Despite initial concerns at the start of the year, investors are entering 2025 with a positive outlook, expecting further growth in the stock market. The S&P 500 index has experienced two consecutive years of significant gains, fueled by a resilient economy and the Federal Reserve's rate cuts.
Investors are heading into 2025 in an optimistic mood, believing that with the economy on a firm footing and the White House in their corner, the stock market will continue to climb. That wasn’t the case at the start of the year, when even the most bullish analysts underestimated the strength of the market. The S&P 500 index, which finished down slightly on New Year’s Eve, rose 23 per cent last year, roughly matching its gain in 2023.
It’s the first time the benchmark index has risen more than 20 per cent in consecutive years since 1998.Credit:On average, analysts are forecasting that the S&P 500 will rise around 10 per cent in 2025. That includes analysts at Morgan Stanley and JPMorgan Chase, who until recently were bracing for a downturn. John Stoltzfus, chief investment strategist at brokerage firm Oppenheimer, heads into the new year as the most bullish on Wall Street, anticipating a 2025 gain of close to 20 per cent. After a spike in inflation prompted the Federal Reserve to rapidly raise interest rates in 2022, stocks tumbled as many on Wall Street anticipated a recession. But the downturn never materialised: Inflation gradually cooled, and the Fed began cutting rates this year, further supporting the economy. While the lingering impact of higher prices continues to strain consumer budgets, it has yet to drag down the economy — or the markets.Andrew Brenner from National Alliance Securities “This time last year there was so much trepidation and concern over the economy, but in fact it has been incredibly resilient,” said Alan McKnight, chief investment officer at Regions Bank. In 2024, roughly $US500 billion ($777 billion) flowed into funds that buy US stocks. More than half of that came in the fourth quarter, after the Fed had begun to cut interest rates, with the two biggest weeks coming after Election Day in November and the most recent Fed rate cut in Decembe
Stock Market Economy Federal Reserve Investment S&P 500
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Investors Bet on Stock Market's Continued Climb in 2025Despite initial concerns, investors are optimistic about the stock market's performance in 2025, fueled by a strong economy and favorable policies. The S&P 500's impressive performance in 2023 and 2024, coupled with the Federal Reserve's rate cuts, has boosted confidence.
Read more »
Beat Money Stress in 2025: Expert Tips to Start the New Year RightAs 2024 draws to a close, many feel the weight of financial challenges. This article offers advice on how to prioritize your finances and avoid common pitfalls in the coming year. Using a proactive approach, the article encourages readers to anticipate potential financial hurdles and create strategies to overcome them.
Read more »
Double Tragedy Mars Queensland Start to 2025 with Two DrowningsTwo separate drowning incidents have claimed the lives of two women in Queensland within a short time frame.
Read more »
Five quick hits — AFL's star recruits making preseason impact, Lions send a 2025 warningPreseason is underway for all 18 AFL clubs with new recruits already making their mark and the reigning champs firing off an early warning. Here are five quick hits.
Read more »
2025 Ford Transit Custom PHEV will be Australia’s first plug-in hybrid van7NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking sport, politics, entertainment, finance, weather and business headlines. Today's news, live updates & all the latest breaking stories from 7NEWS.
Read more »
2025 Honda Civic price and specs7NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking sport, politics, entertainment, finance, weather and business headlines. Today's news, live updates & all the latest breaking stories from 7NEWS.
Read more »