2025 stock market predictions from the big banks

Bank of America (BAC) (BofA) anticipates a strong start for U.S. equities, with the S&P 500 projected to reach 6,666 by the end of 2025. Candace Browning, head of BofA Global Research, notes that while many of the anticipated policy shifts are likely to benefit US equities, their success will depend on the timing and global response.

Savita Subramanian, head of the bank’s equity strategy in the U.S., forecasts a potential upside of more than 10% for the S&P 500, along with a 13% acceleration in earnings growth by 2025. Additionally, senior U.S. economist Aditya Bhave predicts that the Federal Reserve will reduce interest rates by 25 basis points in both March and June.