Next Direction For Sp 500

last updated on

Next Direction For Sp 500

Next Direction For The S&Amp;Amp;P 500 Index

With constant political developments, trade tariffs, and so much uncertainty, the S&P 500 is going through a period of turmoil.

At times like this, everyone asks questions such as where the S&P 500 index is now headed. A quick look at the US economy shows that growth will slowdown this year.

S&Amp;Amp;P 500 To Gain 11%

However, corporate profits in the USA will make record highs, according to the analysts. The analysts from LSEG believe that the EPS of the S&P 500 is around $269.91 for 2025. That's a jump of almost 10% from the previous year.

Meanwhile, the US politics remains a big drag on the S&P 500 index. According to Moody's, the economy is facing headwinds from multiple fronts. From unfunded tax cuts to trade tariffs to economic risks, there's a lot going on.

Also, the federal budget deficit is now hovering at $1.8 trillion which is also a major concern for all the market players.

Last year, the S&P 500 index had a great run and gave a return of around 28%. At that time, the US economy was strengthening, and the interest rates had started to go down.

Unfortunately, the momentum died somewhere along the way as the new US government was formed in 2025. Now, the markets are worried about a lot of different things.

According to Deutsche Bank, the S&P 500 is highly likely to end this year near 7000. BMO Capital believes that the S&P 500 is expected to end 2025 near 6700. That means a gain of almost 11%, which is very good given the current circumstances.

All of these forecasts are based on hopes that earnings will grow and the Federal Reserve will cut rates. Meanwhile, many investors are now looking at the international markets to avoid the risks present at home.

The FTSE 100 from the UK has proven to be a good market for such investors. By switching to other markets, the investors can easily avoid excessive risks and wait things out while earning a buck or two.

Trending Stories