Equity valuations are sitting above their long-term averages, but could be justified if corporate profits stay strong. Earnings per share for S&P 500 companies are projected to rise 10.67% in 2025, according to data compiled by LSEG.

Wall Street's main indexes edged higher in the volatile first trading session of 2025 as investors pinned their hopes on a fresh political landscape and more interest rate cuts, while Tesla slid after a dour deliveries report.