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Bank of America raises S&P 500 target for 2025

Bank of America increases its S&P 500 forecast to 6,300 amidst limited growth expectations.

July 8, 2025 at 10:45 AM

Bank of America raises year-end S&P 500 target to catch up to 'meteoric run,' sees little gain from here

Bank of America sees limited growth ahead for the stock market and updates its S&P 500 target.

Bank of America updates S&P 500 target for 2025

Bank of America has raised its year-end S&P 500 target to 6,300 from 5,600, signaling limited gains ahead. The new target reflects just a 1.1% increase from the index's recent close of 6,229.98. Savita Subramanian, the firm's strategist, expresses concerns about lack of positive catalysts for the market's continued growth. Despite recent record highs, Subramanian cites mixed economic signals and deceleration in tech earnings as indicators of uncertain times. The firm previously lowered its target due to significant market fluctuations earlier this year, but has now adjusted upward as some optimists rethink their positions. According to Subramanian, corporate transparency has not faltered as businesses update profit forecasts amid policy and economic uncertainties.

Key Takeaways

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Bank of America raises S&P 500 target to 6,300 for 2025

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Limited growth outlook reflects cautious market sentiment

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Concerns over tech earnings and economic performance persist

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Corporate transparency remains intact despite uncertainties

"It's hard to identify a positive catalyst for the S & P 500 to continue its meteoric run into Q3."

Subramanian highlights the challenges in finding growth drivers for the market.

"Despite tentative trade deals, corporate transparency has remained intact."

Subramanian discusses the mixed signals of policy uncertainty amid solid earnings guidance.

The adjustment by Bank of America reveals a cautious sentiment among strategists. Despite a raise in the S&P target, the modest upside illustrates the prevailing anxiety about market sustainability. The mix of economic surprises and corporate earnings challenges raises questions about investor confidence moving forward. Past bull runs have seen broader enthusiasm, yet today's volatility makes it uncertain whether the current momentum can last. Subramanian's insights reflect a balancing act between acknowledging past growth while confronting potential headwinds ahead.