UBS says US stocks can climb further after record highs
SPY•UBS analysts said US stocks could rise further, citing AI investment, broader earnings growth and a resilient economy. UBS forecasts S&P 500 earnings growth of 25% in 2026 and 14% in 2027, and sees the index reaching 8,400 by June next year.
1. UBS maintains bullish outlook
UBS analysts led by Ulrike Hoffmann-Burchardi said US stocks can climb further after the S&P 500 set a record closing high on Tuesday, its first since August. They cited renewed strength in AI-related shares, broadening earnings growth and resilient economic conditions.
2. Earnings and growth forecasts
UBS expects S&P 500 earnings to rise 25% in 2026 and a further 14% in 2027, with gains supported by consumer discretionary companies, financial firms and industrial businesses. It forecasts US economic growth of 2.2% this year and 2% in 2027.
3. Index target
UBS said resilient growth could help equities absorb higher interest rates and maintained its bullish outlook, forecasting the S&P 500 would reach 8,400 by June next year. The bank said investors should remain positioned for market upside.
