UBS: The Federal Reserve will continue to support the US stock market, targeting the S&P 500 index at 7,700 points

ChainCatcher News reports that UBS reiterated its target of 7,700 points for the S&P 500 in a report released on Wednesday, believing that a strong macroeconomic backdrop will boost the US stock market. UBS Chief Investment Officer and Global Equities Head Ulrike Hoffmann-Burchardi stated that the Federal Reserve will continue to cut interest rates in the future, despite expected to pause during today’s easing cycle. She pointed out that as more evidence of a weakening US labor market emerges and inflation remains under control, the Federal Reserve may be able to cut rates further.