Main US indexes red; Nasdaq off most, down ~1.6%
Financials weakest S&P 500 sector; Utilities leads gainers
Euro STOXX 600 index down ~0.6%
Dollar edges up; crude, bitcoin, gold all off >2% each
US 10-Year Treasury yield falls to ~4.13%
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UBS WEALTH MANAGEMENT SEES S&P 500 REACHING 7,700 BY YEAR-END
UBS Wealth Management believes investors should position for a broadening equity rally with sectors such as Financials, Healthcare and Utilities likely to perform well this year.
Charlie Anderson of UBS Wealth Management expects the S&P 500 .SPX to reach 7,700 by year-end amid an easing Fed, healthy growth and support from AI. (This represents a 12% rise from the SPX's current level at 6,875.)
"While we remain bullish on stocks for 2026, the mood right now is cautious optimism with fatigue. Stocks are a bit tired after a very strong start to 2026 and we would not be surprised to see some near-term chop as the market figures out its next catalyst," writes Anderson in a note.
He adds that Tech earnings continue to deliver, but sentiment has eroded from purely exuberant and some of the market's biggest tech stocks are getting hit after reporting earnings, which shows that investor expectations have risen.
Anderson believes that AI remains the core driver of big tech earnings, even as investors start to pay closer attention to just how much money these companies are spending on AI and gauging what that eventual return on investment may be.
In terms of valuations, he admits they are elevated in big tech, but he thinks earnings tied to AI and infrastructure continue to support these valuations.
As for the Mag 7, Anderson says the group is no longer moving in lockstep with one another like it has in the recent past. He thinks investors need to think of them less as a category and more so as each individually dominant company navigating its own cycle of growth.
Anderson's message to investors is to develop a diversified portfolio that is positioned to capitalize on a broadening stock market rally that goes beyond big tech.
"A diversified portfolio that participates in upside growth and protects against downside volatility leads to a wonderful investor return over time," he writes.
(Terence Gabriel)
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EARLIER ON LIVE MARKETS:
FED-TREASURY ACCORD WOULD HAVE MINIMAL MARKET IMPACT, BOFA SAYS CLICK HERE
BLAME IT ON BLIZZARDS: JOBLESS CLAIMS, EXISTING HOME SALES CLICK HERE
US STOCKS MIXED OUT OF THE GATE CLICK HERE
BENCHMARK TREASURY YIELD: TRADERS STILL BRACED FOR WHAT COULD BE A BIG MOVE CLICK HERE
MONEY MANAGERS' AI-DRIVEN SELLOFF OVERDONE, SAYS MORGAN STANLEY CLICK HERE
SHARE REPURCHASES TO PROVIDE RENEWED SUPPORT FOR EUROPE CLICK HERE
ASSET MANAGERS BUYING FRANCS AT FASTEST PACE IN 10 YEARS, SAY UBS CLICK HERE
STOXX 600 HITS NEW RECORD, BEATEN DOWN STOCKS HAVE BRIGHTER START CLICK HERE
EUROPE BEFORE THE BELL: STOCKS SET FOR EARNINGS, M&A BOOST CLICK HERE
JOBS IN REARVIEW, EARNINGS NEXT CLICK HERE