Sep 2, 2025 - Business
Stocks could rally another 50% in two years, BofA says
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The bull market has legs that could power the S&P 500 to a peak of 9,914 in September 2027, says Bank of America. With the S&P just crossing 6,500 for the first time, that would imply a rally of about 52.5% from current levels.
Why it matters: It's an extremely bullish call after the market has already had 20 record highs this year.
By the numbers: This potential gain is based on history.
- In the last 100 years, the average gain among 14 bull markets has been 177% over 59 months.
- Based on that data, the S&P has more room to run, as stocks are "only" up about 80% since the October 2022 lows.
Yes, but: Of course, this is a technical indicator, looking at past performance, which is not indicative of future results.
- This doesn't take into account some of the market risks we've covered, ranging from valuations to concentration to macro and policy risks.
- For example, the current S&P 500 price-to-book ratio is at the highest level since 1946, at 5.3 times, BofA also notes.
The bottom line: Bulls are focused on rate cuts, the AI narrative and stimulus that could come in 2026.
- Many investors foresee stimulus from the "one big beautiful bill" outweighing tariff-driven price pressures.
- The earnings growth seen in second-quarter results has outpaced expectations, setting the market up for either more gains ahead, or potential disappointment.
