The S & P 500 touched a record in early trading and was headed for its fifth-straight winning week.
Excluding the energy sector, S & P 500 profit growth should be 8-10%," the bank wrote in a note to clients.
"Many of these companies are benefiting from continued strong growth in AI investment spending and monetization," UBS added.
"In aggregate, the Magnificent 7 will account for 21% of S & P 500 profits in 2024 and closer to 25% in 2025."
The bank sees the S & P 500 climbing to 5,900 by year end and 6,200 by June 2025.
Persons:
Banks, Wells
Organizations:
UBS, Investors, JPMorgan Chase, Federal Reserve
Locations:
Wells Fargo, BlackRock