UBS strategists have announced an upward revision in their S&P 500 target, as they are increasingly confident that the Federal Reserve can engineer a soft landing.
Following indications from the Fed that rate cuts in 2024 are appropriate, UBS strategists have made adjustments to their outlook, expecting four rate cuts in that year.
They believe that while these favorable outcomes have largely been priced into the equity market, there is potential for further expansion in the market rally.
UBS has revised its June and December S&P 500 targets to 4,900 and 5,000 points respectively, while maintaining a neutral preference for US stocks in tactical asset allocation.
They also noted the likelihood of a potential correction phase following the strong market rally in the past two months, which could present attractive entry points to increase exposure to equities.
On Monday, the S&P 500 index closed at 4,763.54 points, up 1.4%.
