Supreme Court tosses out decision letting 18-year-olds carry guns during emergencies in Pennsylvania
Israel asks its defence sector to help foil drone attacks
LVMH third-quarter sales fall 3% as China weighs
Israel inflation eases to 3.5% in September but stays above target
Austrian conservatives again rule out far-right alliance after leaders meet
US holiday sales to grow up to 3.5% in 2024, NRF forecasts
For Johnny and Matthew: Blue Jackets to play their home opener with Gaudreaus in mind
South Carolina ranked No. 1 in women's AP Top 25 preseason poll with UConn, USC, Texas and UCLA next
Delta unveils sleek new cabin design
(Reuters) - UBS Global Research on Tuesday raised its year-end target for the benchmark S&P 500 index to 5,850 points from an earlier projection of 5,600, boosted by corporate profit growth, supportive macro-economic backdrop and interest rate cuts.
The index, which has gained 22.85% so far in 2024, jumped to a record closing high of 5,859.85 points a day earlier.
"Rate cuts should lower interest expense and default risk, adding to both EPS (earnings-per-share) and valuations," analysts led by Jonathan Golub said.
"Financial conditions point to less stress/more liquidity, a positive for valuations," they added.
UBS also raised its 2025 year-end target for the S&P 500 to 6,400 from 6,000 earlier. Strength in technology stocks could help the index further, it said.
The U.S. central bank in September kicked off an anticipated series of interest rate cuts with a larger-than-usual half-percentage-point reduction that Federal Reserve Chair Jerome Powell said was meant to show commitment to sustaining a low unemployment rate as inflation had eased.
UBS expects the Fed to cut rates by 250 basis points through 2026 and said a sharp decline in interest rates could likely lift profit margins by 20 basis points.
(Reporting by Gokul Pisharody in Bengaluru; Editing by Mrigank Dhaniwala)
