From CNBC: 2025-02-18 14:19:35

Stock market investors have enjoyed high annual returns, but investment analysts predict 2025 may not bring the same success. The S&P 500 yielded 23% in 2024 and 24% in 2023, rare for U.S. stocks. Uncertainties like tariffs and inflation may hinder performance this year.

Technology companies have been driving S&P 500 returns, but may not continue to do so in 2025. Tech stocks suffered a rout in late January due to fears of a Chinese AI startup. Despite this, analysts predict the S&P 500 may rise about 12% this year with a positive economic backdrop.

Investors have been spoiled with high returns, but expectations for 2025 should be tempered due to potential market risks. Prioritizing portfolio balance and ensuring alignment with long-term goals is crucial in the current environment. Analysts urge optimism, but caution against overlooking potential challenges.

Read more: A 20% S&P 500 ‘three-peat’ is unlikely in 2025, market strategist says