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UBS: Fed's upcoming interest rate cut could boost stocks

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2025-12-10 18:02:36
UBS pointed out that historically, stocks have performed best when the Federal Reserve cuts interest rates in non-recessionary times. From data since 1970, the S & P 500 Index has averaged an annualised return of 15 per cent when the economy is not in recession and the Fed cuts rates. "We believe the macro environment is likely to continue to be most favourable early next year, supporting the next rally in equities with strong corporate earnings," UBS said.
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