SPOTLIGHT
2025 equity sector performance outlook
As part of Fidelity's market outlook for financial advisors, discover the best investment ideas from our sector portfolio managers and learn how they have positioned their portfolios for the coming year.
Growth-oriented themes lead the way
A slowing in the pace of inflation, easing monetary policy from the U.S. Federal Reserve, and a resilient U.S. economy provided a favorable backdrop for equities—and especially growth stocks—for much of 2024. Looking ahead, our sector leaders believe the major growth-oriented investment themes that dominated the markets in 2024 are likely to persist in the coming year.
From a sector performance perspective, the adoption of cloud infrastructure, spending on artificial intelligence capabilities, and the build-out of data centers continues to drive earnings growth expectations for the stocks of certain companies in the information technology sector. In communication services, AI is proving to be a major driver of growth, along with digital advertising. Demand for electricity to power data centers remains a secular theme that is expected to drive growth for certain well-positioned power producers in the utilities sector.
These are just a few of the investment themes and trends our sector leaders are optimistic about in 2025. Read on to learn more about Fidelity sector managers’ highest-conviction ideas across the 11 equity sectors as part of Fidelity’s investment market outlook for advisors in 2025.
Explore the 11 equity sector outlooks
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Views expressed are as of the date indicated, based on the information available at that time, and may change based on market and other conditions. Unless otherwise noted, the opinions provided are those of the authors and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.
References to specific investment themes are for illustrative purposes only and should not be construed as recommendations or investment advice. Investment decisions should be based on an individual's own goals, time horizon, and tolerance for risk. This piece may contain assumptions that are "forward-looking statements," which are based on certain assumptions of future events. Actual events are difficult to predict and may differ from those assumed. There can be no assurance that forward-looking statements will materialize or that actual returns or results will not be materially different from those described here.
Past performance is no guarantee of future results.
Investing involves risk, including risk of loss.
Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.
Because of its narrow focus, sector investing tends to be more volatile than investments that diversify across many sectors and companies. Sector investing is also subject to the additional risks associated with its particular industry.
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