UBS predicts continued attraction for the U.S. stock market despite a volatile environment fueled by ongoing economic uncertainties and policy shifts. According to the bank, reduced tariffs are expected to unfold before year’s end, followed by potential interest rate cuts from the Federal Reserve. Despite these positive projections, the overall market remains prone to volatility. UBS anticipates an S&P 500 index target of 5800 points at year-end. The bank predicts a 75 to 100 basis point cut in interest rates by the Federal Reserve this year. However, near-term policy flexibility for the Fed appears constrained as it navigates concerns regarding economic growth and potential inflationary pressures.