BMO Capital Markets said on Friday that it was revising its year-end 2025 target for the S&P 500 (.SPX) ,to 7,000 from 6,700 citing factors including Federal Reserve rate cuts and strong earnings.
“With the Fed cutting interest rates, earnings solidifying, AI not ANYWHERE near bubble territory and stock market performance broadening out, the believability and comfortability of US stocks is back in full swing, in our view,” wrote BMO chief investment strategist Brian Belski in a research note announcing the target revision.
“In fact, 2025 could very well be the table setter for a 1995-1996 redux of goldilocks,” he said.
So far on Friday, the S&P 500 was last up 0.6% on the day at 6644.62.