UBS maintains a positive outlook on US equities, predicting the S&P 500 will reach 6,600 by the end of 2025, despite recent volatility and rising Treasury yields. The bank expects corporate profits to grow 5-7% in Q3, contributing to an 11% growth for 2024, driven by strong economic resilience and AI demand. UBS anticipates further rate cuts from the Fed, emphasizing the strength of the economy and sectors like IT, utilities, and consumer discretionary.
