According to ChainCatcher and Jin Shi, UBS stated that the current market sentiment is largely consistent with their basic forecast, which is that tariffs will be reduced from their current levels in the remainder of the year, and the Federal Reserve will further cut interest rates. However, due to the high uncertainty in trade, economy, and Federal Reserve policies, expected volatility remains high.
Nevertheless, UBS believes that the US stock market is attractive, with the S&P 500 index target remaining at 5,800 points by the end of the year. UBS's current basic forecast is that the Federal Reserve will cut interest rates by 75 to 100 basis points this year, but in the short term, the Fed's policy flexibility seems more limited, as it must balance concerns about economic growth with the risk of inflation recovery.
