Brian Belski, BMO Capital Markets chief investment strategist, has maintained his 6,700 year-end target for the S&P 500. This outlook represents a 37% rise from current levels.
Meanwhile, many Wall Street strategists expect the index to end 2025 just above 5,900, since Donald Trump’s bevy of tariffs could slow GDP growth and boost inflation in the US.
JPMorgan projects a recession in the country in the back half of this year. Morgan Stanley expects the stock market to fall by another 7–8% from Friday's close if there are no signs of a less severe trade environment and the US Federal Reserve holds rates steady.
However, Belski believes a stock market sell-off and an economic downturn caused by the duties can lead Trump to relent his tough trade policies. Besides, the strategist analyzed the forward 12-month returns for the S&P 500 after each decline of more than 10% over a two-day period. Belski found that, on average, the index falls by about 14% in those periods but returns more than 36% during the next 12 months.