What to expect from stocks in 2025
CNNNew York CNN — Stocks had a blockbuster 2023 and 2024. US stocks surged last year as strong economic growth, cooling inflation, a series of Federal Reserve rate cuts and enthusiasm for President-elect Donald Trump’s election victory boosted investor optimism. “I am bullish on stocks for 2025, though with valuations high and the bull market maturing, I don’t think investors should expect quite such spectacular returns next year as we have seen this past year,” Jurrien Timmer, director for global macro at Fidelity Investments said in a December 18 note. Wall Street expects continued stock market gains because it forecasts strong economic growth, corporate earnings and an incoming business-friendly administration under Trump. “The Fed’s admitted uncertainty as to monetary policy actions in 2025, combined with the expectation of only two cuts in 2025 amplified investor uncertainty and concern, triggering profit taking this year versus delaying into the new year,” said Sam Stovall, chief investment strategist at CFRA Research.