What will happen to the stock market in 2025? Here’s what the experts say

After reaching record highs in May this year, UK stock market growth has slowed. I FTSE 100 it nearly fell below 8,000 points earlier this month (November) after the October Budget and US election shook things up.

With several new policies affecting markets both at home and abroad, what awaits investors next year?

To answer that question, I sought the wisdom of UK and US experts.

View of the S&P 500

Donald Trump’s trade tariffs are expected to raise interest rates, which could hurt US stocks. Therefore, many analysts do not expect strong growth next year.

David Kostin, chief financial strategist for the US at Goldman Sachsthinks the S&P 500 could reach 6,500. That would be a gain of around 9% from current levels – well below the 26% growth achieved so far this year. Morgan Stanley expects similar growth.

Wells Fargo raised the upper limit of its target to 6,700 from 6,400. It believes tariffs will be phased in gradually, with most negative effects delayed until 2026. Types of BMO Chief investment strategist Brian Belski sees similar growth, with the belief that earnings growth is being underestimated.

FTSE 100 Outlook

As in the US, UK analysts remain cautiously optimistic. According to Jefferies, 66% of market respondents expect the FTSE 100 to end in 2025 more. That’s an improvement from just 50% last year.

The Economic Forecast Agency predicts that the FTSE 100 will reach somewhere around 9900 points in December 2025, up 21% from today. UBS you believe FTSE 250 could start in 2025, it says it provides “a unique combination of durability and growth potential.”

A promising FTSE 250 stock

One stock that I think has potential ITV (LSE: ITV). Britain’s biggest broadcaster and production company has been in the headlines this week after being tipped to take part in it. The low share price has attracted bid interest from a private equity firm CVC Capital Partners.

The company is reportedly looking to break up ITV, take over the Studios arm and sell broadcasting.

The share price jumped 9% on the news to 71p, recovering losses made in early November.

ITV has had a difficult few years as it has struggled to compete with digital streaming services such as Netflix again Disney+. While its Studios division continues to enjoy success with shows like Competitors again love island, The streaming arm is struggling to make a profit. A drop in revenue threatens profitability and puts it at risk of going into debt. Earnings are forecast to decline next year before recovering in 2026.

But a falling price also equates to poor valuation. It now trades at 72% below fair value using a discounted cash flow model, with a price-to-earnings (P/E) ratio of 5.7. A takeover threat may just give it the boost it needs to come back, which could benefit shareholders if it rejects the offer.

The 7.6% yield remains one of the most attractive stock prospects for me. It is well covered by earnings and is predicted to grow by 0.5% annually going forward.

I’m not sure what will happen but for now, I’m holding onto my shares in anticipation.