The S&P 500 will gain 11% by mid-2025 as the bull market accelerates under Trump, Evercore says
Spencer Platt/Getty Images
- The bull market will accelerate under Trump, Evercore ISI analyst Julian Emanuel says.
- Emanuel says Trump will enact deregulatory policies quickly, which will cause stocks to soar.
- He projects the S&P 500 will reach 6,600 by the end of June.
It is still early days for the bull market and the rally is set to accelerate under the coming Donald Trump presidency, according to Evercore ISI analyst Julian Emanuel.
Emanuel says the S&P 500 will reach 6,600 by the end of June, implying an 11% gain from current levels. He points to Trump's deregulatory agency, which could help boost corporate profits.
"This market will be driven higher by the policy prospect of deregulation in DC," Emanuel wrote in a Wednesday note.
Emanuel says Trump will likely act fast to enact his policies when he re-enters the White House. Things like deregulation and corporate tax cuts will boost business activity and allow stocks to surge, he said.
"Exuberance lies ahead; President-Elect Trump will move fast on policy initiatives, and stocks will move fast in response."
The bull market's two-year run has been driven by strong growth from mega-cap tech stocks, and high valuations will rise even higher, he said.
"Expensive has a history of getting more expensive and lasting longer with greater gains," Emanuel said.
He pointed to data showing the average bull market sees a rise of 152% over 50 months, while the current market has seen just a 65% gain in the last 25 months, he says.
It's "still an infant," Emanuel said.
Emanuel's projected jump for the S&P 500 through the middle of next year comes after Trump won the presidential election in a sweeping victory earlier this week, fueling widespread investor optimism.
Indexes soared to record highs on Wednesday after the election result was called, with the Dow Jones Industrial Average gaining over 1,500 points. Bank stocks, Tesla, and bitcoin all saw big moves higher.