Wells Fargo predicts market trends for 2025, including potential growth in GDP and tech breakthroughs

From Investing.com: 2025-01-01 05:00:00

Wells Fargo predicts 2025 market trends, including a shift to organic growth over pricing strategies and a potential mid-2% U.S. GDP growth by spring. Breakthroughs in AI with xAI’s Grok 3 and Meta’s Llama 4 are anticipated to drive competition among tech giants. Coinbase may join the S&P 500, reflecting growing acceptance of digital assets.

The bank foresees a reduction in the 2025 U.S. budget deficit forecast due to stronger capital gains revenues, potentially benefiting Treasuries. Additional tariffs on Chinese imports could lead to retaliatory measures, impacting the commodity complex. Large-cap portfolio managers may see improved performance, while the housing market could rebound in the second half of the year.

Core inflation is expected to ease from 3.3% as consumer demand moderates, with concerns over inflationary pressures from tariffs diminishing. Lastly, momentum in Republican voter registration could enhance the party’s chances of retaining control of Congress in 2026, with Nevada’s voter registration shifting in favor of Republicans.



Read more at Investing.com: Wells Fargo lists 10 market predictions for the new year By Investing.com