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UBS sees S&P 500 soaring to 6,400 by the end of 2025
  + stars: | 2024-10-15 | by ( Fred Imbert | ) www.cnbc.com   time to read: +2 min
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
Here are 33 stocks that will thrive as inflation continues to decline in 2023. But Golub is perhaps most encouraged by the divergence in goods and services inflation. As a result, goods inflation has cratered after initially soaring while services inflation remains high. Another key driver of services inflation is wage growth, Golub said. Stay cautious about stocks despite lower inflationBut despite his optimistic view about the economy, Golub isn't overly bullish on stocks.
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