Barclays is the latest bank to increase its 2025 prediction for the S&P 500 index, raising its forecast from 6,500 to 6,600 today.
The revised forecast is a potential increase of 10.56% from the index’s close of 5,969.34 on Friday. In 2024, Barclays’ projection was 6,000.
Today, Barclays said, “For U.S. equities, we think macro positives outweigh the negatives heading into next year.”
Barclays joins Goldman Sachs and Morgan Stanley, who last week both increased their S&P 500 index forecasts to 6,500 for 2025. The predictions follow decreasing inflation and robust earnings from a rallying US economy. The forecasts depend heavily on the Fed’s planned interest rate cut for December.
The big banks predict the potential earnings growth of Big Tech stocks in the coming year. “We expect most sectors to be impacted by disinflationary margin pressure and slowing ex-US growth in 2025, while Big Tech continues offsetting to the upside,” Barclays noted.
The S&P 500 has gained 3.2% since November 5.
By CEO NA Editorial Staff
