Top 10 Investment Themes That Will Continue To Shape the Stock Market in 2025

What’s Moving the Market in 2025

The stock market in 2025 isn’t just about rates and earnings. It’s about shifting priorities both from governments and consumers and how capital flows are adjusting to them. Some trends are extensions of 2024. Others are breaking new ground. Either way, the list below highlights where money, momentum, and policy are intersecting.

1. AI Is Moving Down the Stack

Artificial intelligence isn’t new, but how it’s being deployed is. We’re moving past the early hype of large language models into more embedded, everyday use cases—from cloud software to healthcare diagnostics.

• What’s happening: Enterprise demand is scaling. So is infrastructure. Data centre capacity is expected to triple by 2030.

• Who benefits: Nvidia (still), as well as firms like Teradyne (chip testing) and Snowflake (data storage).

• How to follow: Global X AI & Technology ETF (AIQ) offers diversified exposure.

The key shift? AI is no longer a moonshot. It’s a utility.

2. Deregulation Is Back on the Table

With a more unified political landscape following the election, M&A activity is picking up. Sectors that were once heavily regulated, such as financials and energy, are now seeing a more straightforward path to consolidation.

• Where the action is: Deal advisory (Evercore, Citigroup), industrials (Vulcan Materials).

• Watchlist: SPDR S&P Capital Markets ETF (KCE).

The message from Washington is: do more with less red tape.

3. Consumers Want Experiences, Not Things

Spending is strong, but it’s shifting. Households are allocating more of their budget toward services, such as travel and restaurants, rather than goods.

• Data point: Discretionary cash flow is projected to rise to 5.2% in 2025, up from 4.4% in 2024.

• Winners: Uber, Norwegian Cruise Line, Burlington Stores.

• Broad exposure: Consumer Discretionary Select Sector ETF (XLY).

Call it revenge spending, phase two.

4. Cybersecurity Isn’t Optional

As more businesses lean on AI and cloud computing, their digital footprint and vulnerability grow. Cybercrime costs are on track to reach $10.5 trillion annually this year.

• Where budgets are going: Palo Alto Networks, CrowdStrike.

• ETF to track: iShares Cybersecurity and Tech ETF (IHAK).

Security is no longer an IT line item. It’s core infrastructure.

5. Energy and Infrastructure Are Back in Focus

AI isn’t just a software story. It’s an energy one. Data centres require a lot of power. Meanwhile, infrastructure spending continues to rebuild outdated systems across the U.S.

• Standouts: Constellation Energy (nuclear), GE Vernova (grid upgrades).

• ETF: SPDR S&P Global Infrastructure ETF (GII).

AI is driving the next wave of energy demand. Not oil—electricity.

6. Small and Mid-Caps Are Closing the Gap

With mega-cap tech priced for perfection, the rest of the market is starting to catch up. Earnings growth is broadening beyond the top 10 names.

• Forecast: S&P 500 EPS growth between 9–15% in 2025.

• ETFs to consider: iShares Russell 2000 (IWM), value-focused sector funds.

This isn’t a rotation. It’s a rebalancing.

7. FinTech and Crypto Are Still Evolving

Bitcoin near $100,000 is drawing headlines, but the real story is infrastructure. Payment systems, brokerage platforms, and digital banks are scaling. Blockchain adoption is growing inside traditional finance.

• Names to watch: Block, SoFi, Robinhood.

• ETF: Amplify Transformational Data Sharing ETF (BLOK).

Volatility remains high, but the direction of travel is clear: more digital, more open, and more programmable.

8. Tariffs Are Not Just Talk

U.S. tariffs are now at 15%—the highest level since the 1930s. Deglobalization is accelerating. That’s creating winners and losers based on where companies source, sell, and manufacture.

• Impact areas: Manufacturing, logistics, export-heavy firms.

• Strategy: Focus on U.S.-centric companies and active managers, such as T. Rowe Price U.S. Equity Research ETF (TSPA).

This isn’t a reversion to isolationism. It’s selective self-sufficiency.

9. Healthcare Has Long-Term Tailwinds

An ageing population, lower rates, and biotech innovation are creating structural demand for healthcare—especially in genomics, diagnostics, and retirement services.

• Opportunities: Biotech (iShares Biotechnology ETF – IBB), long-term care, wealth managers focused on retirees.

It’s not a growth story. It’s a demographic inevitability.

10. Scarce Resources Are Gaining Scarcity Premiums

Silver, copper, lithium—critical inputs in tech, defence, and green energy—are back in demand. Add in inflation concerns, and commodities are seeing renewed interest.

• How to play it: iShares Silver Trust (SLV), mining firms, industrial metal ETFs.

Commodities aren’t about speculation here. They’re about supply chains.

Wrapping It Up

If 2024 was the year of recovery and concentration, 2025 appears to be a year of dispersion and reallocation. AI still leads, but the list is expanding to include cybersecurity, energy, small caps, and real-world infrastructure. Valuations are stretching at the top, and capital is beginning to move into new corners of the market.

The themes are clear. What matters now is how investors respond.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research or speak to a qualified professional before investing.