UBS Says the U.S. Stock Rally Is Not Finished Yet

UBS believes that the U.S. stock market still has the momentum and does not see the uptrend ending anytime soon. The bank points out that the company earnings continue to surprise on the upside especially in the tech sector which is helping justify the current prices rather than stretching them. At the same time borrowing conditions are expected to ease also giving the markets additional breathing room.

UBS expects that profits across the S&P 500 to grow at a steady pace enough to keep pushing the index higher over the next year and into 2026. With clearer signals expected on interest rates and trade policy, uncertainty should gradually fade. From UBS’s view, the environment still favors staying invested rather than stepping aside.