UBS is optimistic about the US stock market continuing to rise in 2026: S&P 500 target at 7700 points, with corporate profits and interest rate cuts providing dual support.

【Block Rhythm】UBS's latest report provides a rather optimistic judgment: the rise of the US stock market will not stop in 2025 and will continue to expand in 2026. What is the core support for this judgment? Corporate profits remain robust and strong, especially the earning capacity of technology companies shows no signs of decline, which makes the current stock price valuation still appear relatively reasonable.

According to the data, the earnings of the S&P 500 index are expected to grow by 10%. If this growth rate continues, the index is likely to surge towards around 7700 points. Additionally, the Federal Reserve still has room for further interest rate cuts, and the new chairman's appointment may bring new market expectations. Don't forget another important variable—the gradual clarification of tariff policies, which will greatly reduce uncertainty for businesses.

Considering these factors, UBS maintains an “attractive” attitude towards the US stock market and suggests that investors continue to hold relevant positions to capture the benefits of this growth cycle. From tech stocks to consumer stocks, from large-cap blue chips to growth stocks, there seem to be opportunities.