Similarly, many investment professionals currently have their gaze fixed on the Federal Reserve to gauge the direction of the market in 2025. In fact, 72% of institutional investors say central bank policy will influence their investment decisions this year, according to the 2025 Natixis Institutional Outlook Survey.

Officials are debating when to restart interest rate cuts, as high prices linger and Trump’s policies add to economic uncertainty.

Federal Reserve Governor Christopher Waller has come out in support of a pause in rate cuts. However, he isn’t ruling out lowering rates later this year.