​Stock Market Set for More Gains in 2025, Analysts Predict       

    The S&P 500 is set to post back-to-back annual gains of more than 20 percent for the first time since the late 1990s. Analysts expect stocks to continue rising in 2025.Investors are heading into 2025 in an optimistic mood, believing that with the economy on a firm footing and the White House in their corner, the stock market will continue to climb.That wasn’t the case at the start of the year, when even the most bullish analysts underestimated the strength of the market. The S&P 500 index rose slightly on Tuesday morning, the final trading day of the year, putting it on track to rise about 24 percent this year, roughly matching its gain in 2023. It would be the first time the benchmark index has risen more than 20 percent in consecutive years since 1998.Can the rally continue? Wall Street thinks so.On average, analysts are forecasting that the S&P 500 will rise around 10 percent in 2025. That includes analysts at Morgan Stanley and JPMorgan Chase, who until recently were bracing for a downturn. John Stoltzfus, chief investment strategist at the brokerage firm Oppenheimer, heads into the New Year as the most bullish on Wall Street, anticipating a 2025 gain of close to 20 percent.After a spike in inflation prompted the Federal Reserve to rapidly raise interest rates in 2022, stocks tumbled as many on Wall Street anticipated a recession. But the downturn never materialized: Inflation gradually cooled and the Fed began cutting rates this year, further supporting the economy. While the lingering impact of higher prices continues to strain consumer budgets, it has yet to drag down the economy — or the markets.“This time last year there was so much trepidation and concern over the economy, but in fact it has been incredibly resilient,” said Alan McKnight, chief investment officer at Regions Bank.In 2024, roughly $500 billion flowed into funds that buy U.S. stocks. More than half of that came in the fourth quarter, after the Fed had begun to cut interest rates, with the two biggest weeks coming after Election Day in November and the most recent Fed rate cut in December.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe.