UBS says S&P 500 could rally past its bullish target because of falling inflation and rates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 13 2024
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Source: CNBC
- S&P 500 Potential: UBS suggests S&P 500 could exceed 5,600 if cooling inflation leads to rate cuts, indicating potential for further upside.
- Market Rally: Strategist Jonathan Golub's target of 5,600 may be surpassed due to falling inflation and declining rates, leading to a potential market rally.
- Interest Rate Cuts: Anticipated interest rate cuts in 2024 have increased, with expectations of three to four cuts over the next year, signaling potential easing of monetary policy.
- Analyst Predictions: Golub's bullish estimate of 5,600 for S&P 500 surpasses the average analyst prediction of 5,220 for the year-end closing.
- Market Outlook: Despite starting with a lower estimate, Golub's revised forecast reflects optimism with the S&P 500 climbing about 14% since the beginning of the year.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
