UBS: U.S. Stock Market Pullback Is Over, Year-End Rally Expected
BlockBeats News, November 25th: The trading department of UBS Securities stated that the sell-off in the U.S. stock market may have come to an end, laying the foundation for a year-end rebound. Last week, the stock market experienced a sharp decline as investors questioned the prospect of further easing by the Federal Reserve and withdrew from crowded AI trades. The S&P 500 Index and the Nasdaq 100 Index fell by about 4% and 7% from their late-October highs, respectively, both dropping to near their 100-day moving averages.
However, UBS believes that with the benchmark indices finding support at this key technical level, the selling pressure from systematic funds has largely eased, and the next month's rate cut expectations by the Federal Reserve seem to be back on track, paving the way for a stronger future stock market.
「Our view is that the current risk-off phase has come to an end,」 wrote Michael Romano, head of stock derivatives at UBS Hedge Fund Sales, in a report released last Sunday.
Romano expects the S&P 500 Index to rise to around 7000 points by the end of the year. He believes that the market shakeout in November has sufficiently reset positions, creating conditions for further upside. The strategist anticipates that the recent pullback may have ushered in a special December, with momentum stocks poised for a strong performance (these stocks typically experience rapid and substantial price fluctuations). (Jinse)
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