Finance
UBS lifts global equities view to 'attractive' on AI boost
Published by Global Banking & Finance Review®
Posted on October 17, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 17, 2025
2 min readLast updated: January 21, 2026
UBS upgrades global equities to 'attractive' citing AI-driven productivity gains and supportive policies. U.S. equities also see an upgrade.
By Joel Jose
(Reuters) -UBS Global Wealth Management upgraded its stance on global equities to "attractive", citing expected productivity gains from AI spending and a supportive policy backdrop."Structural trends remain firmly in place. The wave of strategic partnerships among leading AI players reinforces our confidence in a sustained capex cycle and greater revenue visibility", UBS said in a note on Thursday.The AI boom has spurred a wave of high-profile deals involving Big Tech and Silicon Valley startups in recent weeks.Global equities have climbed to record highs, driven by optimism that the U.S. Federal Reserve began cutting interest rates early enough to avoid a recession.
The MSCI World Index, which is dominated by U.S. stocks, has risen about 15.5% from its April lows, rebounding after a selloff sparked by recession fears following President Donald Trump's 'Liberation Day' tariffs.The brokerage also raised U.S. equities to "attractive" from "neutral", adding that the rally still has room to run.The U.S. stock market's bull run reached its three-year mark recently, powered by AI enthusiasm and, more recently, expectations of interest rate cuts. However, investor worries over high valuations and bubble risks have grown.Separately, UBS lifted its 2025 year-end target for the U.S. benchmark S&P 500 index to 6,900 from 6,600, aligning with a string of upward revisions from peers, citing resilient corporate earnings and a more dovish Fed.
The current target implies about a 4% upside to the index's last close of 6629.07 points.
(Reporting by Joel Jose in Bengaluru; Editing by Tasim Zahid)
Equity refers to the ownership value in an asset or company, represented by shares of stock. It signifies the residual interest in the assets of a company after deducting liabilities.
Investment is the act of allocating resources, usually money, in order to generate income or profit. It can involve purchasing assets such as stocks, bonds, or real estate.
The MSCI World Index is a stock market index that represents large and mid-cap equity performance across 23 developed markets. It is widely used as a benchmark for global equity performance.
The S&P 500 is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is a key indicator of U.S. equities.
AI in finance refers to the use of artificial intelligence technologies to analyze data, automate processes, and enhance decision-making in financial services, improving efficiency and accuracy.
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