The  $S&P 500 Index (.SPX.US)$ wrapped another remarkably prosperous year on Tuesday, notching a second consecutive year of 20% gains and more than 50 record highs.

All three major indices ended Tuesday in the red, with the S&P 500 down 0.43%, the Nasdaq down 0.9% and the Dow Jones Industrial Average ending the session 0.07% lower, according to data from Benzinga Pro.

Despite losing some steam in December, the S&P 500 finished the year 23.5% higher, bolstered by strong corporate profits and artificial intelligence investment and enthusiasm.

Experts expect double-digit gains to continue through 2025, with analysts' price targets for the S&P 500 ranging from 6,000 to 7,100.

Adam Turnquist, chief technical strategist for LPL Financial, noted the average top-down Wall Street strategist price target for the S&P 500 has climbed to 6,614 at year's end, up from 5,548 in October. He highlighted this as the highest quarterly rate of change since the data series began in 1999, reflecting the overwhelming optimism of market participants.

The LPL Research target range for the S&P 500 at the end of 2025 is between 6,275 and 6,375.

Analysts also anticipate the S&P 500 to report double-digit earnings growth in calendar year 2025 with an estimated earnings growth rate of 14.8%, according to data from Factset.

The average EPS estimate for the S&P 500 next year is $269, with the range of forecasts spanning from $254 to $282, according to LPL Research. The firm's own estimate is for an EPS of $260 for the S&P 500 in 2025.  

The $SPDR S&P 500 ETF (SPY.US)$ ended Tuesday's session down 0.36%, but closed out 2024 with gains of 23.31% on the year.  

Turnquist said that LPL Research expects stocks to move modestly higher in 2025, but cautioned that gains could be offset by "excessively" bullish sentiment and stretched valuations.

"Positive surprises that drove stocks higher in the last year may be more difficult to come by in the year ahead," Turnquist said.