Analysts’ predictions for the S&P 500’s performance in 2025 are bullish, with many expecting a 10% rise. According to FactSet Research analyst John Butters, this would put the index at around 6,679 by year-end. This forecast marks a notable shift from previous years, where analysts have underestimated the market.
Over the past five years, analysts have underestimated the S&P 500 in four out of five years, including last year. However, historically, Wall Street has overestimated the index’s annual return in 13 of the last 20 years. This trend suggests that optimism about the US economy and corporate profits is driving forecasts.
Major firms like Morgan Stanley and Goldman Sachs also expect the S&P 500 to rise to 6,500 next year, driven by accelerating earnings growth. A survey of financial advisors found that two-thirds expect the index to increase by at least 10% in 2025, although many warn of potential market volatility. The current rally has seen the S&P 500 gain over 26.9% since the start of the year, with the Dow Jones Industrial Average and Nasdaq Composite also experiencing significant gains.
Source: https://www.investopedia.com/factset-s-and-p-500-consensus-outlook-8760983