S&P 500 forecast to hit 7,100

Analysts at US investment firm Oppenheimer expect much higher for the benchmark US equity indes. In breif:

• S&P 500 Forecast: Predicted to hit 7,100 by end-2025, driven by sustainable monetary policy, strong economy, and favourable labour markets.
• Earnings Growth: S&P 500 earnings projected to grow 10% to $275 in 2025 ($250 in 2024), with a forward P/E of 25.8x.
• Key Sectors: Focus on tech, consumer discretionary, industrials, financials, and communication services; small- and mid-cap stocks likely to rally amid Fed rate cuts.
• AI as a Growth Driver: AI seen as transformative, improving efficiency and productivity across sectors while addressing global challenges.
• Market Sentiment: Bull market expected to continue in 2025, supported by sector rebalancing, economic activity, and AI growth potential.
• Cautionary Note: Economic “utopia” is overstated, but markets rest on a strong foundation.

On AI, they say it’s a transformative force, analagous to the automobile:

• “This technology could drive efficiency and productivity improvements across all sectors and contribute to solving some of the world’s challenges”

When your candlestick charts meet the automobile.

This article was written by Eamonn Sheridan at www.forexlive.com.