UBS: The market bets on Trump and the Federal Reserve to rescue the economy, with a year-end target of 5800 points for the S&P 500 index
ChainCatcher news, according to Jinshi reports, UBS stated that the current market sentiment is consistent with the bank's basic forecast, which is that tariffs will decrease from the currently announced levels for the remainder of this year, and the Federal Reserve will further cut interest rates this year. However, due to the high uncertainty surrounding trade, the economy, and Federal Reserve policy, expected volatility remains elevated.Nevertheless, UBS believes that the U.S. stock market is attractive, with a year-end target for the S&P 500 index at 5800 points. UBS's current basic forecast is that the Federal Reserve will cut interest rates by 75 to 100 basis points this year, but in the short term, the Fed's policy flexibility seems more limited, as it must balance concerns about economic growth with the risks of inflation recovery.