ChainThink report, December 22: UBS believes that the bullish momentum in the U.S. equity market, driven by strong corporate earnings, accommodative monetary policy, and increasing policy clarity, will extend into 2026.

The bank notes that corporate profits—particularly in the technology sector—remain robust, keeping current valuations at a reasonable level.

UBS forecasts a 10% earnings growth for the S&P 500 index, which could push the index to around 7,700 points. Additionally, further rate cuts by the Federal Reserve and the upcoming appointment of a new Fed Chair may provide additional market support. Clarity on future tariff policies would also help reduce uncertainty.

Based on this outlook, UBS maintains its "attractive" rating on U.S. equities and recommends investors maintain their allocations to capture ongoing market growth opportunities.