UBS: Market Bets on Trump and Fed to Rescue the Economy, S&P 500 Year-end Target at 5800 Points

UBS states that the current market sentiment aligns with its baseline forecast, which expects tariffs to be reduced from current announced levels, and for the Federal Reserve to cut interest rates further this year. However, due to ongoing uncertainties in trade, economic conditions, and Fed policies, volatility is expected to remain high. Nevertheless, UBS considers the U.S. stock market to be attractive, maintaining a year-end target of 5800 points for the S&P 500 Index. UBS's current baseline forecast predicts a rate cut of 75 to 100 basis points by the Fed this year. In the near term, the Fed's policy flexibility appears to be more limited as it has to balance between growth concerns and the risks of inflation recovery. (Jinshi)