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UBS is joining Wall Street firms to reduce the S&P 500 annual target below 6500

UBS is joining Wall Street firms to reduce the S&P 500 annual target below 6500

UBS Global Wealth Management lowered the S&P 500 2025 target below 6,500, a move that was widely mirrored by other Wall Street firms, including Barclays, Goldman Sachs and others, as a result of the economic impact from U.S. Tariffs.

UBS' wealth management division has lowered its target for the year-end U.S. equity index to 6,400, down from 6,600. However, it still maintains an "attractive view" of U.S. stocks.

UBS has also reduced its earnings per share estimate (EPS) for 2025 of the S&P500 to $265, down from $270.

It seems likely that policy uncertainty will cause further weakening in economic and company profit readings over the next few weeks. The U.S. equity market could be volatile in the near term, according to UBS strategists in a Thursday note.

The U.S. president Donald Trump has imposed a number of tariffs against its main trading partners. The latest is a 25% tax on auto imports, which has upset the global financial markets.

After entering correction territory in March, the benchmark index has lost over 4% of its value this year.

UBS hopes that U.S. stocks will reverse their course and increase by the end the year. This is due to policy clarity, sustainable economic growth, and investments in artificial intelligence.

The current target index of the brokerage is still 12 % higher than its last closing price of 5,693.31.

UBS believes that AI investment will drive growth in the information technology sector.

Barclays Goldman RBC and RBC cut their S&P 500 target earlier this month due to the uncertainty caused by tariffs.

(source: Reuters)