4 reasons US equites are nervous

US equities on Thursday:

• Dow industrial average lower. S&P and the NASDAQ index move to the upside

UBS say to expect more volatility ahead, through to the election.

Analysts there nominate 4 reasons:

• higher yields
• expectations for a more modest pace of Federal Reserve interest rate cuts
• geopolitical concerns
• election uncertainty

And point to the VIX around its long-run average of 20, off its lows seen earlier this year.

UBS maintain their forecast for the S&P 500 at 6600 by year-end 2025:

• corporate earnings solid
• resilient US economy
• Fed committed to lowering rates
• AI demand still a driver of growth

This article was written by Eamonn Sheridan at www.forexlive.com.