UBS: US stock rally may continue into 2026, with a target of 7700 for the S&P 500.

According to Odaily Planet Daily, UBS believes that the US stock market's rally from 2025 will continue into 2026, driven by strong corporate earnings, loose monetary policy, and a clearer policy outlook. The bank points out that corporate profits, particularly in the technology sector, remain strong, keeping current valuations at reasonable levels.

UBS forecasts that S&P 500 earnings will grow by 10%, potentially pushing the index to around 7700 points. Furthermore, further interest rate cuts by the Federal Reserve and the inauguration of a new chairman could provide additional support to the market. Clarity regarding future tariff policies will also help reduce uncertainty. Based on this, UBS maintains its "attractive" rating on US equities and recommends investors maintain their allocations to capitalize on continued market growth opportunities.