AI investments and easing monetary policy boost confidence
UBS Global Wealth Management has upgraded its outlook on global equities from “neutral” to “attractive,” citing productivity gains from artificial intelligence investments and supportive economic policies, Reuters reports.
“Structural trends remain strong. The wave of strategic partnerships among leading AI players strengthens our confidence in a sustained investment cycle and better earnings visibility,” UBS said in a note on Thursday.
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AI enthusiasm and partnerships between Big Tech and Silicon Valley startups have pushed global stock markets to record highs, while expectations that the US Federal Reserve will continue easing have reinforced investor optimism.
US stocks remain in focus
UBS also upgraded its stance on US equities to “attractive,” highlighting continued upside potential in the ongoing rally. The MSCI World Index has climbed 15.5% since April lows, and the bank raised its S&P 500 year-end target to 6,900 points from 6,600 — a roughly 4% upside from the latest close.
Still, UBS cautioned that investors are becoming increasingly wary of high valuations and the possibility of an AI-driven speculative bubble, after three years of steady gains fueled by technology optimism and monetary easing hopes.
Photo: The Wall Street Journal
