UBS: Expects U.S. stocks to continue to rise in 2026, advises investors to maintain their allocation.

On December 22, UBS Group believes that the rise of the US stock market in 2025 will continue into 2026, driven by strong corporate earnings, loose monetary policy, and clearer policy prospects. The bank pointed out that corporate profits (especially in the technology zone) remain strong, keeping current valuations at reasonable levels. UBS predicts that earnings for the S&P 500 index will rise by 10%, which could push the index up to around 7700 points. In addition, further interest rate cuts by the Fed and the appointment of a new chairman may provide additional support to the market. The clarification of future tariff policies also helps reduce uncertainty. Based on this, UBS maintains its “attractive” rating for the US stock market and recommends that investors maintain their allocation to seize opportunities for continued market growth.