UBS Optimistic on S&P 500: Corporate Earnings Drive Growth
UBS Global Wealth Management has raised its year-end target for the S&P 500 index due to strong corporate earnings, easing trade tensions, and expected interest-rate cuts. The index target was increased to 6,600 from 6,200, with a neutral stance maintained on U.S. stocks despite potential optimism in trade developments and elevated valuations.
UBS Global Wealth Management has revised its year-end target for the S&P 500 index, marking the second such adjustment in as many months. The new target of 6,600 suggests a 3.6% upward movement from its last close, highlighting the impact of strong corporate earnings and improved trade relations.
The revised target follows a recent increase to 6,200, demonstrating UBS's confidence amidst an AI-driven rally. As of mid-August, over 80% of the S&P 500 companies surpassed analyst earnings expectations, fueling the index's growth.
Despite the positive outlook, UBS maintains a 'neutral' position due to the market's lack of immediate catalysts and high valuations, and eyes Federal Reserve Chair Jerome Powell's forthcoming symposium address for potential changes in interest-rate trajectories.
(With inputs from agencies.)
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