Additionally, the target yield for U.S. 10-year bonds is forecasted to range between 4.00% and 5.00%, reflecting varying expectations among brokerages.

Chief U.S. equity strategist David Kostin has highlighted high event risks heading into 2025, including the impact of these tariffs and rising bond yields.

This projected return of 11% contrasts sharply with the robust 24% gains seen in both 2023 and 2024, which exceeded initial bearish expectations.

In terms of stock market performance, Goldman Sachs forecasts the S&P 500 to reach 6,500 by the end of 2025, reflecting an 11% increase from current levels.

Major brokerages have released their forecasts for global economic growth in 2025, with UBS Global Research predicting a 2.9% increase globally, 1.9% in the U.S., and 4.0% in China, while Goldman Sachs estimates a slightly lower global growth of 2.7% and 2.5% for the U.S.

Specifically, Trump is expected to impose tariffs on cars and select imports from China, potentially leading to higher consumer prices.

However, uncertainties surrounding President-elect Donald Trump's proposed tariffs are expected to modestly slow global economic growth in 2025, raising concerns among analysts.

These proposed tariffs are anticipated to create volatility in global markets and increase inflationary pressures, which could limit central banks' ability to ease monetary policies.

In 2023, the Magnificent 7 outperformed the S&P 500 by 63 percentage points, raising concerns about market concentration risks.

The 'Magnificent 7' mega-cap tech stocks are expected to continue driving S&P 500 performance, although their influence is projected to diminish in 2025 compared to previous years.

Despite this, these stocks are still projected to outperform the remaining S&P 493 stocks by 7 percentage points, marking the smallest margin in seven years.

Goldman Sachs maintains an optimistic outlook, expecting overall economic conditions to improve with lower inflation and increased M&A activity boosting investor returns.