Instacart Stock Drops After FTC Probes AI-Based Price Discrimination Claims 
Oracle Stock Surges After Hours on TikTok Deal Optimism and OpenAI Fundraising Buzz 
Trump Administration Reviews Nvidia H200 Chip Sales to China, Marking Major Shift in U.S. AI Export Policy 
Yen Near Lows as Markets Await Bank of Japan Rate Decision, Euro Slips After ECB Signals Caution 
Asian Stocks Slide as AI Spending Fears and Global Central Bank Decisions Weigh on Markets 
OpenAI Explores Massive Funding Round at $750 Billion Valuation 
LG Energy Solution Shares Slide After Ford Cancels EV Battery Supply Deal 
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
New Zealand Business Confidence Hits 30-Year High as Economic Outlook Improves 
Precious Metals Rally as Silver and Platinum Outperform on Rate Cut Bets 
Dollar Holds Firm Ahead of Global Central Bank Decisions as Yen, Sterling and Euro React 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
Singapore Growth Outlook Brightens for 2025 as Economists Flag AI and Geopolitical Risks 
Treasury Wine Estates Shares Plunge on Earnings Warning Amid U.S. and China Weakness 
Asian Markets Rebound as Tech Rally Lifts Wall Street, Investors Brace for BOJ Rate Hike 
U.S. Dollar Steadies Near October Lows as Rate Cut Expectations Keep Markets on Edge 
Delta Air Lines President Glen Hauenstein to Retire, Leaving Legacy of Premium Strategy 
UBS strategists predict the S&P 500 will close 2025 at 6,400, driven by backloaded returns. Despite early-year challenges, U.S. equities are expected to outperform global counterparts, particularly European and emerging markets, amid a cooling global economy.
S&P 500 Gains Expected to Be Backloaded in 2025
UBS market analysts project that the S&P 500 will close the year 2025 at approximately 6,400. With returns "being backloaded," the bank noted in a note, this would represent an approximately 9% increase from the current levels.
"After a rally this year through Trump’s cabinet appointments, we see mild downside in equities in H1 next year amid a step down in US growth," wrote strategists led by Arend Kapteyn.
After more reasonable earnings predictions are made, the company believes that the equity markets will be in a better position in the second half of 2025.
U.S. Equities to Outpace Europe and Emerging Markets
According to Investing.com, although US stocks may underperform European shares for a few months, UBS predicts that US stocks will beat European equities in the long run. On the other hand, compared to EM stocks, European stocks are expected to do better.
When it comes to style, UBS says that quality equities will keep doing better than value companies, and that the US will be a shining example.
Among emerging markets, the bank has singled out Chinese internet companies as a prime target. Nevertheless, the business cautions against putting too much stock in trade gains involving China's other benefactors.
Global Growth Slows Amid Tariff Challenges
Global economic indicators such as falling inflation and interest rates, fastest-rising real earnings in 20 years, and early indications of a housing market revival are encouraging, but strategists predict a slowdown in growth.
In particular, they anticipate a slowdown in worldwide growth over the next two years, with estimates ranging from 2.6% to 3.2%. Reasons for this prediction include the thought that the US economy will slow down and, more importantly, the effect that US tariffs will have on China's economy, which is already in a precarious position.
