The 2024 trends and outlook for 2025 are reasons for the market to show some holiday cheer and rally through the year’s end. Not only is the S&P 500 (NYSEARCA: SPY) in an earnings-driven uptrend but the stage is set for tailwinds to develop next year and sustain the trend into 2026.
Falling interest rates and deregulation go hand in hand with rising stock prices because of increased business investment, accelerated economic activity, and earnings growth of the nation's largest companies. Earnings growth is important because it fuels a robust outlook for capital return growth, which includes dividends and share buybacks.
