Wells Fargo Lists 10 Market Predictions For The New Year

  • Posted on January 01, 2025
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  • By FC Team
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Investing.com -- In a note to clients released Monday, Wells Fargo (NYSE:WFC) has outlined ten market predictions for 2025, covering macroeconomic trends, market movements, technological advancements, and geopolitical developments. These insights reflect the bank's expectations for economic performance, industry shifts, and investor sentiment for the new year.1) Wells Fargo analysts believe investors will prioritize organic growth over pricing strategies, as seen in 3Q24 earnings. In reaction, companies will scale back price increases, a subtle but positive development for controlling inflation.2) The bank expects consensus projections for 2025 U.S. GDP growth to mid-2% by spring, mirroring the year-ago 2024 trend.“This could help propel equities higher in 1H25, but sets up a "normal" correction in the summer,” Wells Fargo analysts Christopher Harvey and Gary Liebowitz said in a note.3) Breakthroughs in AI are anticipated with xAI's Grok 3 and Meta (NASDAQ:META)'s Llama 4, leveraging record-breaking GPU clusters three times larger than standard setups. According to analysts, these advances could reignite the AI trade and intensify competition among tech giants for larger-scale innovations.4) Wells Fargo predicts that Coinbase (NASDAQ:COIN) will join the S&P 500 in the first quarter of 2025, reflecting increasing investor risk tolerance and bolstering momentum-driven strategies. This milestone would highlight the growing acceptance of digital assets in mainstream markets.5) A reduction in the 2025 U.S. budget deficit forecast, now at $1.89 trillion, is expected as stronger capital gains revenues provide an unexpected boost. This would provide “a decent contrarian tailwind for Treasuries,” analysts said.

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