As the US stock market engine "stalls", UBS once again raises the target price for the S&P 500 index

UBS once again raised its target price for the S&P 500 index, expecting the index to reach 5900 points by the end of this year and 6200 points by mid-2025. They believe that the fundamentals of the US stock market are favorable, with a solid economic growth foundation, a healthy labor market dynamic, and further growth in consumer spending. It is expected that the Federal Reserve will begin cutting interest rates in September. The UBS team believes that there is strong demand for artificial intelligence infrastructure, with technology companies leading the competition in the emerging artificial intelligence ecosystem, and companies in various industries hoping to deploy artificial intelligence tools. They are maintaining the earnings target for the S&P 500 index at $250 per share, with next year's target adjusted to $270 per share. The UBS team believes that valuations are reasonable, and stocks typically perform well in the 12 months before and after the first rate cut by the Federal Reserve in the context of a soft landing