UBS Projects Rate Cuts Amid Continued Market Uncertainty – Coincu

UBS has affirmed its outlook for significant economic shifts, with rate cuts expected by the Federal Reserve during 2025. The financial institution also maintains its S&P 500 target of 5,800 points for the year-end.

This forecast is notable due to its implications for global market dynamics and investment strategies. Expectations include mixed market reactions and potential volatility.

UBS Predicts 75-100 Basis Point Rate Cuts by 2025

UBS outlines its current economic forecast through 2025, expecting the Federal Reserve to cut interest rates by 75 to 100 basis points. This projection is driven by perceived economic uncertainties, along with anticipation of a reduction in tariffs.

“We maintain our year-end 2025 S&P 500 price target of 5,800. The tariff-induced slowdown in economic activity, as well as the higher costs, will lead to a slowdown in corporate profit growth.”

The economic landscape is expected to shift as UBS positions itself bullishly on US stocks. While maintaining a year-end S&P 500 target, there is acknowledgment of volatility due to inflationary pressures. Public and industry reactions reflect heightened alertness. No major statements from influential leaders, but investor sentiment remains edgy due to potential interest rate adjustments.

Bitcoin Hits $94,410: Rate Cuts May Fuel Crypto Sentiment

Did you know? In previous tariff and rate adjustment cycles, markets exhibited heightened volatility, a trend UBS expects to continue amid current uncertainties.

Bitcoin’s latest market data, updated at 08:49 UTC on April 26, 2025, shows a price of $94,410.81, marking a 0.73% increase over 24 hours. With a market cap of 1.87 trillion, Bitcoin maintains dominance at 63.17%, according to CoinMarketCap.

Coincu insights suggest that potential rate cuts may foster a bullish market sentiment in the cryptocurrency sector, leveraging historical context where lower rates have typically spurred investment.