UBS
May 25, 2026
Daily US
Daily UpdateEquitiesRates Govt BondsCommoditiesInformation TechnologyConsumer Discretionary
UBS maintains a positive outlook on equities and quality bonds, citing strong EPS growth and AI-driven capex as primary drivers despite geopolitical risks in the Middle East.
Key Takeaways
- 1.Despite geopolitical risks and high yields, fundamentals remain supportive of further equity gains, driven by strong earnings and AI demand.
- 2.S&P 500 earnings per share are expected to grow by 20% this year, while Asia ex-Japan profits are forecast to jump by 62%.
- 3.Oil supply disruptions remain a risk, but the base case remains for prices to stay contained as negotiations between the US and Iran progress.
Table of Contents
- From the studio
- Thought of the day
- Caught our attention
- Market update
- Appendix
- Global asset class preferences definitions
- Risk information
- Generic investment research – Risk information
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Authors
Ulrike Hoffmann-BurchardiMark Haefele
Securities
SPXMSCI Asia ex-JapanBrent CrudeJapanese government bond (10-year)
Themes
Artificial Intelligence CapexGeopolitical Energy Risk
Regions
North AmericaEuropeAsia PacificUnited StatesGermanyJapan