BofA Expects S&P 500 to Reach 6666 Points by the End of 2025

Forex - Bank of America economists and strategists expect the S&P 500 index to rise to 6666 by the end of 2025. They anticipate that the U.S. economy will continue to perform well and that 2025 will be a year of further strength in the stock market.

In a press release, they stated, "As important details regarding policy changes in the U.S. are awaited, early indicators suggest that the outlook for 2025 could present significant opportunities for investors. The U.S. economy is progressing on a strong footing with increasing signs of accelerating productivity growth as it enters the new year. In the new outlook published by BofA Global Research economists and strategists for 2025, they expect the economic and earnings growth of the U.S. to surpass that of other developed economies, while also anticipating a strong start for U.S. equities and the S&P 500 finishing the year at 6666. Policy changes, including tariffs, tax policy, and regulatory environment, will have an impact on the rest of the world nearly as much as they will on the U.S. As the year progresses, international opportunities will become apparent: European equities are expected to slow down but are predicted to return to their current levels by the end of 2025, while domestic stimulus measures in China will compensate for the slowdown brought about by changes in trade policies," they stated.

Candace Browning, Head of BofA Global Research, noted, "Growth surprised on the upside in 2024, and inflation moved in the right direction, allowing central banks to begin easing, risk assets to perform well, and global equities to reach new highs. However, as we move toward 2025, policy uncertainty has significantly increased. Most of the anticipated policy changes will be positive for U.S. equities, but much will depend on their timing and how the rest of the world responds."