BlockBeats News, October 15th. This week, UBS stated that driven by robust growth, expectations of a Fed rate cut, and strong AI investments, the upward trend of the S&P 500 index is expected to continue. The bank predicts a third-quarter earnings per share (EPS) growth rate of around 10%. The reasons include:
· Resilient Consumer Spending: While the labor market has cooled somewhat, it remains stable, with low layoffs, continuous wage growth, and a healthy number of job openings. UBS believes this will provide support for the economy and corporate profits.
· Strong AI Investment Momentum: The application of artificial intelligence technology and related spending continue to grow. UBS expects cloud service providers to achieve robust revenue growth, and earnings expectations for AI infrastructure-related companies are also being revised upwards.
· Policy Support and Positive Earnings: The Fed’s rate cut, along with ongoing corporate profit growth, have together created a favorable environment. UBS believes that the upcoming earnings season will strengthen the foundation of this bull market.
