UBS Says Fed Rate Hike Won't Derail Equity Rally

MacroAnalystDigital Finance
โดย Investing.com·US·Read original
Summary · why it matters

UBS told investors Thursday that the Federal Reserve's latest interest rate increase should not derail the equity rally, even as policymakers signaled more tightening to come. The Fed unanimously raised its target range by 25 basis points to 3.75% to 4.00%, with Chair Kevin Warsh saying officials had "removed a dose of accommodation" and that broad financial conditions were hard to describe as restrictive. Despite the hawkish tone, with 16 of 18 officials now expecting at least one more hike this year, UBS said much of the tightening is already priced in, noting markets had braced for nearly four increases over the cycle versus UBS's forecast of two. The bank pointed to the Fed's upgraded growth forecasts and strong August retail sales, which rose 1.2%, as evidence the tightening is manageable, and forecast industry AI capital spending rising to $1.2 trillion in 2027 from $900 billion. UBS also forecast S&P 500 profit growth of 25% in 2026 and 14% in 2027, recommending diversified exposure while avoiding rate-sensitive concentration.

Impact on stocks 4

Financials▲ · 1 stocks
UBS Group AG
UBSG
± MixedCapitalrelevance

UBS is the source of the bullish equity/AI-capex and S&P 500 profit forecasts, but the article reports no company-specific financial event for UBS itself.

Artificial Intelligence▲ · 1 stocks
NVIDIA Corporation
NVDA
▲ PositiveCapitalrelevance

UBS forecasts industry AI capital spending rising to $1.2 trillion in 2027 from $900 billion, supporting AI-chip demand backdrop for NVIDIA.

Others▲ · 2 stocks
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