U.S. equities are expected to continue their upward trajectory, driven by strong earnings growth, a resilient economy, and anticipated Federal Reserve rate cuts, according to UBS. The firm projects the S&P 500 will reach 6,300 by June 2025 and 6,600 by December 2025, supported by a 9% earnings per share growth forecast for 2024 and 2025.The ongoing investment in artificial intelligence and robust consumer spending further bolster confidence, despite inflationary pressures. UBS notes that historically, equities have risen by an average of 18% in the year following the start of a Fed easing cycle, suggesting a favorable environment for stocks.
