UBS: We expect US stocks to continue their upward trend in 2026 and recommend investors maintain their current allocation.

A recent analysis by UBS indicates that the upward momentum in the US stock market, driven by continued strong corporate earnings, a more accommodative monetary policy environment, and a gradually clearer outlook for key policies, is expected to extend into 2026, maintaining an optimistic overall market outlook.

The bank emphasizes that corporate profit growth—particularly in the technology sector—remains outstanding, offsetting some market concerns about high valuations and placing current share prices within a relatively reasonable range.

Solid profitability provides fundamental support for the market, reducing overall downside risk.

UBS further predicts that the S&P 500 is expected to achieve approximately 10% earnings growth in 2026, a growth driver that could propel the index upward, targeting around 7700 points.

Meanwhile, the Federal Reserve is expected to continue its rate-cutting cycle, and the appointment of a new chairman could further improve financial conditions, providing liquidity support for the stock market.

Furthermore, the increasing clarity of future trade and tariff policies will help alleviate uncertainty for businesses and enhance investment and operational confidence.

Based on the aforementioned positive factors, UBS maintains its "attractive" rating on US equities and recommends investors maintain their allocations to fully capitalize on the structural growth opportunities that the market may continue to present in the medium to long term.

The institution believes that, driven by both earnings and policy support, US equities still offer good investment value. (Source: BLOCKBEATS)