Barclays Raises S&P 500 Index Forecast for 2025 from 6,500 to 6,600

Forex - Barclays raised its forecast for the S&P 500 index for 2025 from 6,500 to 6,600 on Monday, citing the resilient U.S. economy, a gradual decline in inflation, and the strong potential earnings growth of mega-cap technology stocks.

The revised forecast represents a 10.56% increase from Friday's closing of 5,969.34 and a 10% increase compared to Barclays' 2024 forecast of 6,000.

Barclays analysts stated, "For U.S. equities, we believe the macro positives outweigh the negatives as we move into next year."

The bank noted that as the U.S. Federal Reserve is expected to continue its easing cycle, the resolution of uncertainty following the U.S. elections and the low unemployment rate could together boost the benchmark index.

Last week, both Goldman Sachs and Morgan Stanley predicted that the index could reach 6,500, relying on ongoing growth in the U.S. economy.