ICYMI – UBS raise its S&P 500 forecast as high as 5600, 4 reasons for support

UBS raised its forecast price target for the S&P 500 to:

• 5500 at the end of 2024
• 5600 by June 2025
• “Our new June 2025 target represents modest upside from current levels, but our main message is that the backdrop is constructive and investors should have a full allocation to US equities,”
• our view on the markets has not changed materially

UBS adds that the market backdrop remains favorable with the same drivers in place:

1) solid and broadening profit growth,

2) disinflation,

3) a Fed likely pivoting to rate cuts,

4) surging investment in AI infrastructure and applications.

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