UBS: S&P 500 Rally Expected to Continue Driven by Rate Cut Expectations and AI Investment

BlockBeats News, October 15, UBS stated this week that, supported by steady growth, Federal Reserve rate cut expectations, and strong AI investment, the rally in the S&P 500 Index is expected to continue. The bank forecasts third-quarter earnings per share (EPS) growth to reach approximately 10%. The reasons include: · Resilience in consumer spending: Although the labor market has cooled somewhat, it remains solid, with layoff rates at low levels, sustained wage growth, and a healthy number of job vacancies. UBS believes this will provide support for the economy and corporate profits. · Strong momentum in AI investment: The application of artificial intelligence technology and related expenditures continue to grow. UBS expects cloud service providers to achieve steady revenue growth, and earnings expectations for companies related to AI infrastructure are likely to be revised upward. · Policy support and improving profitability: The Federal Reserve's rate cuts and sustained corporate earnings growth together create a favorable environment. UBS believes the upcoming earnings season will reinforce the foundation of this bull market.