JP Morgan forecasts S&P 500 slowdown in 2025

JP Morgan analysts predict a potential slowdown for the S&P 500 in the second half of 2025, suggesting a modest decline from current record levels. This forecast anticipates a cooling period rather than a crash, influenced by factors like inflation and a weakening dollar. The investment bank's outlook also includes rising inflation, potentially delaying interest rate cuts by the Federal Reserve. They anticipate the S&P 500 to end the year slightly lower, with a 3.5% decrease. Additionally, they forecast gold prices could reach $3,675 per ounce by the end of the year. This analysis suggests a shift in market dynamics, with potential volatility and a focus on a few leading tech stocks. The weakening dollar and rising gold prices are also highlighted as key elements in the evolving financial landscape.