UBS analysts believe that the upward momentum in the US stock market remains intact, with expectations that the S&P 500 index will continue to rise for at least another year, and will set new record highs in the coming period.
According to the bank's estimates, the S&P 500 index is expected to reach 7,700 points by the end of 2026, supported by the strong performance of major American companies, particularly the technology companies known as the Group of Seven, which continue to play a pivotal role in driving market profits and guiding its course.
In a recent research note, analyst Sagar Khandialwal explained that the bank’s positive outlook is based on a range of key factors, foremost among them strong corporate earnings growth and the accelerating impact of artificial intelligence technologies, which have become a key element in improving operational efficiency and creating new growth opportunities.
He also noted that increased investments in energy and resources, along with sectors related to longevity and healthcare, are additional drivers of positive performance during 2026.
The report added that strong consumer demand in the United States remains a key pillar of economic growth, despite challenges related to inflation and interest rates.
UBS analysts also expect monetary policy to move towards greater flexibility in the coming period, as inflationary pressures subside, which could provide a more supportive environment for stock markets.
The bank also noted that continued fiscal support and government spending, particularly in infrastructure and technology, would boost investor confidence and improve economic growth prospects.
In this context, large companies with strong budgets and a high capacity for innovation are likely to benefit the most from these conditions.
UBS analysts expect companies such as Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta and Tesla to continue to lead market performance, given their dominance in artificial intelligence, cloud computing, semiconductors and digital services sectors, areas that are expected to play a pivotal role in the global economy in the coming years.
Despite the optimistic outlook, the report indicated the possibility of markets experiencing periods of volatility or price corrections in the short term.
However, the overall trend remains upward in the medium and long term, especially for investors who adopt long-term investment strategies.
Overall, UBS concluded that US stocks continue to offer attractive investment opportunities, and that the Standard & Poor's 500 index is poised to continue achieving new historic highs, supported by technological progress, an improving economic environment, and the continued strength of major corporate earnings.
