US Equities Have Room For Further Gains

UBS maintains an attractive rating on US equities, forecasting an S&P 500 target of 8,200 over the next 12 months driven by sustained AI demand and resilient economic growth. The firm anticipates the Federal Reserve's next policy move will be a rate cut.

Key Takeaways

• 1.Maintain Attractive rating on US equities with S&P 500 target of 8,200 over 12 months.
• 2.Fed is expected to remain on hold, but the next move is likely a cut due to slowing wage growth and moderating price pressures.
• 3.Continued AI adoption and economic growth should drive 20% EPS growth for the S&P 500 in 2026.

Table of Contents

• From the studio
• Thought of the day
• There remains room for the Fed to cut interest rates as current policy is modestly restrictive
• What to watch: 8 June
• Caught our attention
• Market update