S&P 500 set for significant gains, UBS suggests, as technology leads and market momentum expands

UBS is forecasting a powerful run for US equities, predicting the S&P 500 will climb to 7,500 by 2026. According to Marketwatch website, S&P 500 index is currently around 6,832.43 points according to recent data.

In a research note, the Swiss bank said it expects about 14 percent earnings growth by 2026, nearly half of it powered by the technology sector. UBS emphasized that valuation multiples are unlikely to expand significantly from current levels, making corporate profits the key engine of market gains.

The bank outlined what it called a “tale of two halves” for the global economy. It anticipates a short-term slowdown as tariffs and price pressures continue to ripple through supply chains, followed by a rebound in momentum later in 2026 as business confidence strengthens and fiscal support measures take hold.
The bank noted that the effects of recent tariffs are still working their way through prices and exports, creating uneven conditions in the near term.

UBS expects US equities to deliver about 10 percent returns next year, outperforming most other major global markets.

Although Europe and emerging markets are projected to generate solid earnings and roughly 8 percent returns, UBS analysts anticipate they will slightly lag behind the US benchmark.According to Investing live website, the analysts noted that valuation pressures are expected to be a modest drag, but persistent investor inflows could still lift multiples. UBS also anticipates the market rally to expand beyond large-cap technology stocks in the second quarter of 2026, reaching lower-quality cyclical sectors following a brief consolidation earlier in the year.