UBS has raised its year-end target for the S&P 500 to 6600 points for the second time in two months, betting on profit resilience and rate cut expectations.

UBS Global Wealth Management has raised its year-end target for the S&P 500 index for the second time in two months, betting that stronger corporate profits, easing trade tensions, and expectations of a rate cut will drive the market higher. UBS has raised the target from 6200 points to 6600 points, implying a 3.6% upside compared to the index's latest closing price of 6370.17 points. In late June, UBS had raised the target from 6000 points to 6200 points. Earlier this month, major brokerages including Citigroup and HSBC have also raised their target for the index. After hitting a low in April due to President Donald Trump's tariff policy, the US stock market rebounded thanks to the AI boom supporting resilient corporate profits. According to data from the London Stock Exchange Group (LSEG), as of August 15, 459 companies in the S&P 500 index have reported quarterly earnings, with 80.2% of companies exceeding analysts' expectations. UBS strategists stated in a report on August 21, "The bull market remains intact, and the stock market may continue to rise in the next year." However, they still maintain a "neutral" rating on the US stock market, citing that the market may have already priced in the optimistic expectations on trade progress, lacks short-term catalysts, and valuations are high. UBS has also raised its annual earnings per share (EPS) forecast for the S&P 500 index from $265 to $270, and raised the mid-term target for 2026 from 6500 points to 6600 points, with EPS forecast raised from $285 to $290. Investors will also focus on Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole Global Central Bankers' Symposium on Friday evening to look for clues on the interest rate path.