3 REASONS UBS THINKS THE S&P 500 BULL MARKET ISN’T OVER UBS said this week it expects the S&P 500 rally to continue, fueled by steady growth, upcoming Fed rate cuts, and strong AI investment. The bank forecasts about 10% EPS growth in Q3. 1. Resilient Consumer Spending The labor market has cooled but remains solid: layoffs are low, wages are rising, and job openings are healthy. UBS sees this supporting both the economy and corporate profits. 2. Strong AI Investment AI adoption and related spending keep growing. UBS expects solid revenue growth for cloud providers and upward earnings revisions for companies tied to AI infrastructure. 3. Supportive Policy and Earnings Fed rate cuts and durable earnings growth create a favorable backdrop. UBS believes the upcoming earnings season will reinforce the bull market’s strength.(*Walter Bloomberg)