UBS's Optimistic Outlook: S&P 500 Target Raised Amid Easing Trade Tensions

UBS Global Wealth Management has revised its year-end target for the S&P 500 index, now projecting it to hit 6,200, up from its previous forecast of 6,000. This update reflects UBS's confidence in easing trade tensions and resilient corporate earnings as factors supporting market growth.

The Swiss bank's adjustment implies a 1% upside to the index's last recorded position of 6,141.02. According to UBS, the U.S. equity recovery makes strategic sense in light of milder tariff impacts, particularly as many large-cap companies appear capable of handling such challenges.

The UBS note elaborates on the positive outlook, stating improvements in growth and inflation metrics are expected toward the year's end, following initial economic reactions to tariffs. It raised its EPS estimate to reflect anticipated financial resilience and potential boosts from the budget reconciliation bill.

(With inputs from agencies.)