Another bullish forecast for the New York Stock Exchange next year has been added from Wall Street in the United States. Wells Fargo, a major U.S. bank, projected the S&P 500 index to reach 7007 by the end of 2005. This surpasses all previous forecasts released by major Wall Street investment institutions.
Christopher Harvey, Wells Fargo's equity strategist, presented the S&P 500 year-end forecast of 7007 on the 3rd (local time), citing the macroeconomic environment as a key reason. He sees nearly 16% additional upside potential compared to the S&P 500 closing price of 6049.88 on that day. This is the highest among all major Wall Street investment institutions tracked by Yahoo Finance. The previous highest forecast was 7000 by Yadani Research and Deutsche Bank.
Strategist Harvey stated, "With the next U.S. administration under Donald Trump and the Federal Reserve (Fed) slowly lowering interest rates, we expect a macro environment increasingly favorable to stocks," adding, "Simply put, this is the background for the stock market to continue rising." Based on this, he also predicted that corporate margins will expand and the U.S. economic growth rate will exceed the current estimate of 2.1%. He added, "In the latter half of 2025, increased mergers and acquisitions (M&A) activity will provide some benefits to the market."
This aligns with the analysis from Bank of America (BoA) the previous day, which anticipated rallies centered on economically sensitive sectors throughout the next year. Strategist Harvey expects that stronger-than-expected growth rates and deregulation under the second Trump administration will stimulate rallies in so-called cyclical sectors that are sensitive to economic growth. Like BoA, he also forecasted that the existing rally, which had been focused on the ‘Magnificent 7’ tech stocks such as Apple, Nvidia, and Tesla, will spread to the rest of the S&P 500 companies.
Previously, Yadani Research and Deutsche Bank predicted the S&P 500 would reach 7000 by the end of next year, citing strong U.S. economic growth and the launch of a business-friendly second Trump administration as reasons. BoA presented a forecast of 6666 the day before. Meanwhile, Morgan Stanley, Goldman Sachs, and J.P. Morgan each forecasted 6500.
Meanwhile, on the same day, the S&P 500 index, which is centered on large-cap stocks, closed at 6049.88, up 0.05% from the previous session, setting another all-time high.
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