Oppenheimer initiated the highest 2025 year-end forecast for the S & P 500 among the big names on Wall Street so far. The firm’s 7,100 target for the broad market index for 2025 implies 16.7% upside potential from Friday’s close at 6,090.27, and 6,200 for the end of this year. .SPX YTD mountain S & P 500 in 2024 Chief investment strategist John Stoltzfus cited the resilience in the economy and the consumer, as well as current monetary policy and business and job growth for his bullish projection for 2025. “The broadening of the market from the market lows on October 27, 2023 along with ongoing rebalancing and rotation among sectors, market capitalizations (large, mid and small stocks), style (growth and value) and cyclicals and defensives suggest to us that the current bull market likely has legs strong enough to climb the proverbial ‘wall of worry’ into and through 2025,” Stoltzfus wrote in a note on Monday. Artificial intelligence is a “watershed point” for tech and the economy that could parallel the way cars revolutionized peoples’ lives and the economy in the 1920s, Stoltzfus added. He believes all sectors of the market will benefit from the increased productivity from AI advancements. “We’re not suggesting paradise on earth nor are we expecting a ‘Goldilocks world’ but rather a genuine potential for AI to provide greater efficiencies in key areas that are challenging progress today across the sectors and society,” Stoltzfus said. “The potential for better virtual shovels and virtual drill bits to mine a world of increasing mountains of data to find solutions at a quicker pace could be one of its greatest contributions,” the strategist added. To be sure, while Stoltzfus believes tech will “share center stage” in the year ahead, he advocates for diversification across all market sectors. Oppenheimer’s favorite sector picks are information technology, communication services, consumer discretionary, industrials and financials. —CNBC’s Michael Bloom contributed to this report.
