Caixin Media, November 26th (Editor: Bian Chun) Since Trump won the US election, the US stocks have repeatedly hit new highs, and are expected to set more records in the future. Wall Street investment banks have successively raised their target prices in recent days. $S&P 500 Index (.SPX.US)$ next year's target prices.

On Monday, Deutsche Bank set the target point for the S&P 500 index at 7,000 points by the end of 2025, expecting strong earnings growth from USA companies to continue into next year.

Earlier that day, Barclays raised its target price for the S&P 500 index for 2025 from 6,500 points to 6,600 points, citing the strong USA economy, gradually easing inflation, and the potential for strong profit growth among major technology companies.

Deutsche Bank's prediction is nearly 17% higher than the S&P 500 index's latest closing price, while Barclays's prediction is over 10% higher than the latest closing price.

On Monday (November 25), US stocks opened high and closed high, with all three major indexes collectively rising. The Dow Jones Industrial Average closed at a historic high. By the end of trading, the Dow Jones index was up 0.99%, reporting 44,736.57 points, the S&P 500 index was up 0.30%, reporting 5,987.37 points, both indexes set new records during trading; the Nasdaq Composite Index was up 0.27%, reporting 19,054.84 points.

Deutsche Bank expects that the new USA government will implement tax cuts and deregulation measures to drive economic growth in the USA.

Deutsche Bank analysts stated that from a supply and demand perspective, US stocks remain robust, with the driving factors of large capital inflows and strong buybacks from the past two years expected to continue until 2025. The investment bank also predicts that by 2025, the index's EPS will grow to $282.

The deutsche bank analyst stated, "We expect the buyback scale of the s&p 500 index to increase from the current $1.1 trillion per year to around $1.3 trillion next year, growing in sync with earnings." He continued, "We believe that, even under conservative assumptions, the supply-demand backdrop for us stocks will remain solid, driving the s&p 500 index to around 7,000 points next year."

Barclays stated that large technology companies will continue to drive the earnings of the s&p 500 index. The bank raised the expected eps for the s&p 500 index from $268 to $271.

Barclays analysts wrote in a report, "We believe that for us stocks, macro bullish factors will outweigh bearish factors next year."

Barclays stated that the Federal Reserve is expected to continue its monetary policy easing cycle, and the uncertainty after the us presidential election has been eliminated, with the unemployment rate remaining low, all of which could collectively boost the s&p 500 index.

Optimism on Wall Street is spreading.

In recent days, several investment banks have raised their target price for the s&p 500 index.

Last week, both goldman sachs and morgan stanley predicted that the s&p 500 index could reach 6,500 points by the end of 2025, citing continuous growth in the us economy, strengthening corporate profits, and the Federal Reserve's interest rate cut path.

ubs group also pointed out in a research report last week that the s&p 500 index is expected to break through 7,000 points in the coming 2025, possibly recreating the prosperous scene of the historically famous "Roaring Twenties."

Market research firm Yardeni Research also believes that, with Trump's victory and the Republican Party controlling both houses of Congress, the possibility of a "roaring twenties" scenario has increased. The firm anticipates that Trump's new administration may drive the s&p 500 index to rise to 7,000 points by the end of next year.

Editor / jayden