Investors hope that the good line of growth in the markets will continue until 2025. Experts add that “the stock market is feeling collective relief after going through a tense election period” and “Trump's (Donald) inauguration day will be a potential turning point.”
Futures on the S&P 500 were up 0.32%, on the Dow Jones Industrial Average 0.32% and on the Nasdaq Comp. They lose 0.28 percent
The S&P 500 is likely to end next year at 7,000 points, or about 16%, according to a forecast by John Higgins, chief markets officer at Capital Economics. above the level at which the index closed on Thursday.
Investor forecasts
– The stock market is feeling relieved after going through a hectic election cycle and extraordinary market momentum through 2024 with strong gains collectively. Todd Ahlsten, chief investment officer of Parnassus Investments, said that in the future until 2025, the market gains will expand and deepen.
Kyle Rodda, senior financial analyst at CapitalCom, said: “There is a clear calm right now, and unless something unusual happens, the markets are unlikely to have a clear direction.”
As the year draws to a close, investors' attention will shift to the Fed's monetary policy, the incoming Trump administration and its tariff policies, and geopolitical concerns.
– There is still upside potential in this bull market, but it is limited. (Donald) Trump's inauguration day will be a potential turning point, when all the good news will be on values, said Luca Paolini, chief strategist at Pictet Asset Management.
Donald Trump is scheduled to take office as the President of the USA on January 20, 2025.
Trump's inauguration as the president of the USA is scheduled to take place on January 20, 2025. Joe Radle/Getty Images
– Strong causes of excitement are offset by high valuations and abundance of unknowns. John Belton, portfolio manager at Gabelli Funds, said in a note to clients that we wouldn't be surprised to see the rally weaken after Trump's victory, even if temporarily.
“The dollar rate will move upwards”
The Fed surprised markets earlier this month by cutting rates by 25 basis points, but forecast just two rate cuts next year, compared to four in September. Markets estimate 37 bp. next year, the easing and the next reduction will be fully reflected in the June estimate.
“In short, if the markets can get comfortable with the prospect of two more Fed cuts in the future, then backed up by strong data as business conditions stabilize, the bull market may have a chance to resume,” said Kyle Rodda, senior market analyst. Finance at CapitalCom.
– It is likely that the US dollar will continue to rise, as the unprecedented rate cut by the Federal Reserve Bank and the strong economic growth of the US compared to other economies will affect the market valuation, said Ahmed Azzam, regional financial market analyst of Equiti Group.
Bitcoin, currency, oil
The dollar weakened by 0.11%. compared to the basket of currencies up to 107.95 points. Euro-dollar strengthens by 0.09%. to 1.0432. USD/JPY fell 0.16%. to 157.77. The pound sterling rose by 0.24%. It was equal to 1.2555 against the dollar.
The three major US indexes are in positive territory so far this week after posting strong gains at the start of the holiday-shortened week. The S&P 500 rose 1.8%. this week. The stock market index recorded its best result on Christmas Eve since 1974. The Dow Jones gained 1.1%. this week, and a rally in large-cap technology stocks sent the Nasdaq Composite up 2.3%.
Nasdaq is up 4.2% in December. The S&P 500 was up about 0.1%. within a month. DJI is heading for its worst April since April, down about 3.5%. On Thursday, the Dow Jones Industrial Average closed down 0.07% at 43,325.80 points. The S&P 500 ended the day down 0.04%. and it was 6037.59 points. The Nasdaq Composite fell 0.05%. up to 20,020.36 points
Bitcoin price rose 1.13%. up to $96,564 per token (less than PLN 400,000).
In Europe, the Euro Stoxx 50 index increases by 0.72%, the German DAX by 0.56%, the French CAC 40 by 0.69% and the British FTSE 100 by 0.09%. Europe's benchmark Stoxx 600 index rose 0.53%.
In the oil market, WTI contracts rose 0.84% in February. to $70.20 a barrel and February Brent futures rose 0.69%. up to USD 73.77/bar.
Main image credit: Joe Raidle/Getty Images
