Strategist Jonathan Golub raised his 2025 S & P 500 target to 6,400 from 6,000 in a note to clients released Tuesday.
"UBS economists forecast 3.7% nominal GDP in 2025 (1.6% real), roughly in line with long-term averages," he said.
Golub also noted that a "sharp decline in Fed Funds will likely increase profit margins by 20 [basis points] via lower interest expense."
The Fed lowered its benchmark fed funds rates a half a point, to a range of 4.75% to 5.0%, in September.
Bottom line: Stocks could consolidate to end 2024 before scaling new heights in the new year, based on UBS' outlook.
Persons:
Jonathan Golub, Golub, Stocks, Golub doesn't, Goldman Sachs
Organizations:
UBS, Federal Reserve, Fed
Locations:
Monday's