UBS Predicts the Attractiveness of the US Stock Market Amid Economic Uncertainty
AI Summary
According to Odaily, UBS indicated that current market expectations align with its forecast that rates will decrease from current levels by the end of the year, and the Federal Reserve will implement further interest rate cuts. Despite ongoing uncertainties in trade, the economy, and the Federal Reserve's policy, volatility is expected to remain high. UBS considers the US stock market attractive, maintaining an annual target of 5800 points for the S&P 500 index. The bank's baseline forecast anticipates that the Federal Reserve will cut interest rates by 75-100 basis points this year. However, in the short term, the flexibility of the Federal Reserve's policy appears limited as it balances concerns about economic growth with the risks of inflation recovery.
