Via a UBS Global Wealth Management note.

UBS points to policy easing as a major tailwind, forecasting that the Federal Reserve will resume rate cuts at its September meeting, with a total of 100 basis points of cuts expected by early 2026.

• “Rate cuts have typically been supportive for stock markets during non-recession periods,” the note added. “And a likely weaker US dollar as a result of lower rates should offer a further tailwind.”

Says investors should brace for short-term volatility but remain confident in the broader equity rally:

• “While we still expect near-term volatility as the impact of US tariffs feeds through to the economy, we also believe the bull market is intact and expect further gains over the next year”

Despite policy and geopolitical headwinds, UBS maintains a constructive stance on risk assets, suggesting investors may find opportunities to position for the next leg higher once short-term uncertainties recede.

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Expectations of cuts are piling up after the terrible jobs revision last week: