UBS: Expects the S&P 500 index rise to continue driven by interest rate cut expectations and AI investments.

On October 15, UBS stated this week that the rise of the S&P 500 index is expected to continue driven by robust growth, Fed rate cut expectations, and strong AI investments. The bank forecasts a growth rate of about 10% for third-quarter EPS. Reasons include: · Resilience in consumer spending: Although the labor market has cooled somewhat, it remains solid, with low layoff rates, continuous wage growth, and a healthy number of job vacancies. UBS believes this will provide support for the economy and corporate profits. · Strong momentum in AI investments: The application of artificial intelligence technology and related expenditures continue to grow. UBS expects cloud service providers to achieve steady revenue growth, and earnings expectations for companies related to AI infrastructure will also be revised upward. · Policy support and improving profits: The Fed's rate cuts and ongoing corporate profit growth together create a favorable environment. UBS believes that the upcoming earnings season will strengthen the foundation of this bull run.