BMO Capital Markets: Optimistic Outlook for the S&P 500 Until the End of 2025

BMO Capital Markets has raised its forecast for the S&P 500 at the end of 2025 from 6,700 to 7,000 points. This adjustment reflects expectations that interest rate cuts by the US Federal Reserve, stable corporate earnings, and the absence of a bubble in the field of artificial intelligence will lead to solid performance in the US stock market. Brian Belski, the chief investment strategist at BMO, stated in a research note that the conditions for US stocks are very favorable. This assessment is based on broader market performance, which strengthens investor confidence. Additionally, Belski predicts that the year 2025 could offer a similar setup to the so-called Goldilocks era of 1995–1996, characterized by stable growth and low inflation. On Friday, the S&P 500 already registered a gain of 0.6 percent, reaching a level of 6,644.62 points. This movement reflects the current positive sentiment in the market, fueled by the announced interest rate cuts and solid corporate earnings.