Prominent Wall Street strategists are predicting that the S&P 500 will reach 6,500 by the end of 2025, resulting in an 11% price increase and a total return of 12% including dividends. This forecast is based on expectations of economic expansion and an 11% growth in earnings for 2025, along with a slight decrease in the forward P/E multiple.

It is worth noting that strategists tend to align their forecasts around average returns, as seen with Morgan Stanley's Michael Wilson sharing the same target of 6,500. However, UBS's Jonathan Golub projects a slightly lower target of 6,400, indicating an 8% gain, and BMO's Brian Belski is more optimistic with a prediction of 6,700, a 13% increase. Belski emphasizes that bull markets often experience periods of slower growth, which can contribute to their overall health.

It is important to consider that the S&P 500 has already experienced a 24% increase year-to-date, following a similar rally in 2023. Therefore, the anticipated returns for 2025 would represent a significant cooling from the impressive gains of the past two years.