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EVERCORE ISI SEES S&P 500 AT 6,800 BY YEAR-END 2025

Evercore ISI is out with its 2025 outlook, saying it sees the S&P 500 .SPX ending next year at 6,800 amid "positive business sentiment" around Republican President-elect Donald Trump.

The S&P 500 index is just over 6,080 on Monday.

According to a Dec. 15 note from Julian Emanuel, senior managing director leading the equity, derivatives & quantitative strategy team, "pandemic stimulus + the ongoing 'AI Revolution'" has driven a decade of equity returns "comparable to the 1920’s and 1950’s."

The team expects more volatility like 2018. Trump was previously U.S. president from 2017 to 2021.

Among potential risks going forward are higher bond yields and stagflation concerns, the note says.

Going into 2025, Evercore's overweight sectors are communication services, consumer discretionary and information technology, and they recommend buying AI "enablers, adopters and adapters," small caps and options when the Volatility index .VIX is low like it is now.

(Caroline Valetkevitch)

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