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.