Wall Street Split on 2025 Stock Market Outlook as Bears Warn of Economic Slowdown
Stifel and BCA Research predict significant market corrections, citing sticky inflation, slowing growth, and high valuations, while most analysts remain bullish.
- Stifel forecasts the S&P 500 will drop 10%-15% in the second half of 2025, ending the year in the mid-5,000s due to slower economic growth and persistent inflation.
- BCA Research predicts a steeper decline, expecting the S&P 500 to fall 27% to 4,450 by year-end 2025, driven by recession risks and fading consumer spending momentum.
- Most Wall Street analysts remain optimistic, with the average S&P 500 year-end target at 6,539, reflecting an 8% potential upside from current levels.
- Stifel highlights extreme stock market valuations and expects the Federal Reserve to pause rate cuts early in 2025, keeping rates at 4%, which could pressure equities.
- Both Stifel and BCA Research recommend defensive sectors like healthcare, utilities, and consumer staples as safer investment options in a potentially challenging market environment.
Markets Insider 