Several top firms raise predictions for S&P

Several top firms have raised their predictions for the rally the S&P 500 index will experience by the end of 2025.

S&P 500 sign.

As of June 24th, most large index funds including the S&P 500 have surged magnificently to near all-time highs, reflecting strong investor sentiment retreating from the Trump ceasefire deal ending the Israel-Iran proxy conflict, as of now.

Now, the Standard & Poor's 500 index is less than 100 points away from breaking its all-time record.

Previously, most top firms have lowered their estimates for the S&P starting in April after "Liberation Day" tariffs rolled into fruition by the Trump administration. But now, many of these same firms are scaling back their cuts and even adding more potential for the index to see a resurgence in the coming months.

BMO Capital Markets was one of these firms to change their outlook for one of the largest indexes in the stock market. Brian Belski, chief investment strategist at BMO, raised his target to 6,700 for the S&P 500 index by the end of 2025, up from the 6,100 that he expected beforehand. Like many others, he succumbed to tariff fears that an inflationary environment would prevent a bull market.

"The signposts we called out in April are largely in place - markets are transitioning TO 'show me' FROM 'scare me,'" Belski said. "We believe performance is broadening, reactions from daily rhetoric are calming, and actual corporate guidance will increase coming out of the 2Q earnings reporting period."

"The death of 'American Exceptionalism' was widely exaggerated and too vehemently applauded to hold any merit or duration in our view," Belski added. "After all, we continue to believe US stocks are the best global equity asset, offering the most consistent fundamentals, ingenuity, and diversification than any other market in the world."

Now, investors have taken the initiative to begin pouring back their capital into the stock market and recover their confidence from months ago.

"The cease‑fire really is adding fire to the stock market rally. We believe investors are wagering that calm in the Middle East is really a boon for stocks even as it weighs down bonds and oil prices," said Greg Bassuk, the chief executive officer of AXS Investments.