History Says the S&P 500 Will Surge in 2025. 2 Top Stocks to Buy Before It Does.

The U.S. stock market posted a stellar performance in 2024, with the benchmark S&P 500 index reaching an all-time high closing value of 6,090.27 on Dec. 6.But things may turn even better in 2025. According to Charles Schwab, based on 14 interest rate cycles since 1929, the S&P 500 index has posted positive returns 12 months from the first rate cut in the cycle 86% of the time. The benchmark index posted negative returns after rate cuts in 2001 and 2007, attributed mainly to the recessionary environment.In September 2024, the Federal Reserve commenced the ongoing rate cut cycle by reducing benchmark interest rates by 50 basis points. Subsequently, since the current economic environment does not appear recessionary, it may be prudent to expect the index to continue growing till September 2025. Many analysts seem to agree with this projection. UBS expects the S&P 500 to reach 6,400, while Oppenheimer Asset Management's chief investment strategist, John Stoltzfus, expects the index to reach 7,100 in 2025.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool