UBS Securities Trading said the round of capital withdrawal from U.S. stocks may have come to an end

The decline in US equities may have come to an end, setting the stage for a year-end rally, according to the trading desk of UBS. Stocks tumbled last week as investors wavered over expectations of further Federal Reserve easing and retreated from crowded artificial intelligence trading. The S & P 500 and Nasdaq 100 are down about 4 per cent and 7 per cent respectively from their record highs set in late October, with both falling to their 100-day moving averages. But with benchmarks gaining support at this key technical level, the systemic fund sell-off has largely subsided, and expectations of a Fed rate cut next month appear to be back on track, UBS believes stocks still have room to rise. "We believe the current phase of risk aversion is over," Michael Romano, head of equity derivatives hedge fund sales at UBS Securities, wrote in a note released on Sunday.