UBS has downgraded its view on US equities to Neutral from Attractive, saying the recent market rebound has priced out much of the excessive pessimism that had followed the White House’s “Liberation Day” tariffs.
The S&P 500 has climbed 11% since 10 April, outpacing the level it held before the tariff announcement on 2 April. UBS had previously upgraded US stocks on the view that markets had overreacted to the trade risks. But with sentiment rebounding and valuations recovering, the investment bank now sees a more balanced risk-reward outlook.
“The 90-day cooling-off period between the US and China has offered some relief,” the bank wrote. “But uncertainty remains high, and markets are likely to shift focus to whether a temporary fix can evolve into a durable deal.”
While UBS acknowledged the constructive tone from both sides, it cautioned that obstacles remain and fresh volatility cannot be ruled out.
Despite the downgrade, UBS emphasised it is not turning bearish
