The stock market has experienced a two-year rally, but experts warn that several factors, including former President Donald Trump’s policies, may slow or derail this momentum. The S&P 500 saw a 23% increase in 2024, the best two-year run in a quarter-century.
Despite solid gains expected for this year, investors are cautious due to uncertainty about the economic agenda of the Trump administration, inflation, and the Federal Reserve’s next move on interest rates. Some stocks linked to the artificial intelligence boom may be overvalued, given investor fervor.
Market veterans predict a repeat of last year’s performance is unlikely, as concerns about pricing and future market fluctuations mount.
Source: https://www.nytimes.com/2025/01/02/business/dealbook/bull-bear-case-markets-2025.html