Exploring 10 Key Charts That Reveal Insights on Market Trends and Economic Shifts for 2024
Here are some key takeaways from the article:
Market Outlook for 2025
- The S&P 500 is expected to end 2025 higher, with a median target of 6,600, representing an 11% increase from current levels.
- Only one strategist out of 17 expects the index to end 2025 lower.
Fed’s Easing Cycle
- The Federal Reserve lowered interest rates by 25 basis points to a range of 4.25%-4.5% at its final meeting of the year.
- Fed officials see the fed funds rate falling to 3.9% in 2025, higher than previously projected.
Economic Indicators
- The labor market is cooling, with hiring and quits rates moving lower throughout 2024.
- The unemployment rate has remained steady at around 4%, suggesting a "soft landing" for the economy.
- Downside risks to the labor market have diminished, but the labor market remains looser than pre-pandemic levels.
Corporate Earnings
- Corporate earnings are expected to continue growing in 2025, supporting further gains in stock prices.
Key Themes
- A cautious approach by the Federal Reserve is expected, with a more gradual pace of rate cuts.
- The economy remains on solid footing, with corporate earnings growth and a cooling labor market supporting further gains in stock prices.
