The financial sector shined in 2024, and many analysts believe it will continue to rocket through 2025. The financial services sector could continue to benefit from a strong economy as well as a deregulatory agenda under the Trump administration.
And so far, so good. Despite the Federal Reserve’s January decision to pause interest rate cuts, the financial sector continues to outperform the broader market. Year to date, the S&P 500 financials index returned 7.62 percent. The S&P 500 returned 3.24 percent.
