UBS Raises S&P 500 Year-End Target

(Reuters) – UBS Global Wealth Management has raised its year-end target for the S&P 500 index to 6,200 from 6,000, citing softening trade tensions and expectations for resilient quarterly earnings.

The new target suggests approximately 1% upside from the benchmark index’s last close of 6,141.02. Other major brokerages like Citigroup and Barclays have also increased their targets for the index this month.

U.S. equities have experienced a recovery rally as easing trade tensions have heightened investor risk appetite, following a tariff-induced sell-off in March and April.

UBS noted, “We think the recovery makes sense, considering that most large-cap companies should weather the tariffs reasonably well.” The wealth management division has maintained a ‘neutral’ stance on U.S. equities.

In April, President Donald Trump’s administration imposed reciprocal tariffs on key trading partners, causing global market fluctuations, but has since reduced some rates on select countries, including China.

UBS stated, “The good news is that growth and inflation should start to improve later this year once the economy adjusts to the one-time impact of the tariffs.”

UBS has also increased the index’s annual earnings-per-share (EPS) estimate to $265 from $260. They expect a resilient Q2 earnings season and believe that the budget reconciliation bill could boost corporate cash flows, which may be directed towards share repurchases or investment spending.

Additionally, UBS raised its mid-year 2026 index target to 6,500 from a prior estimate of 6,400, and lifted the EPS forecast to $285 from $280.