UBS is the latest Wall Street firm to cut its year-end target for the S & P 500 , a sign that sentiment remains weak among strategists after President Donald Trump's tariff plans sparked unprecedented volatility in the market and a broad sell-off. David Lefkowitz, UBS Global Wealth Management's head of U.S. equities, cut his S & P 500 target by about 9% to 5,800 from 6,400. That new target implies a decline of 1.4% from where the broad market index ended last year. Lefkowitz also downgraded his view on U.S. equities from attractive to neutral and lowered his gross domestic product growth expectations to below 1% for 2025. "President Trump surprised us and the markets by announcing much more aggressive tariffs than expected. While we believe these tariff rates will eventually be negotiated lower, we don't expect a quick reversal in tariff policy," Lefkowitz said in a note to clients. "As a result, our economics team has downgraded their growth expectations to reflect anemic GDP growth this year." Slower economic growth calls and tariff projections also led UBS to lower its full-year earnings per share expectations for the S & P 500 to $250 per share, down from $265 per share, which Lefkowitz said "corresponds to no growth for the year." "We think earnings growth should resume in 2026. … In our base case, the risk-reward for US stocks would be more appealing in the low 5,000s," he said. UBS sees a growing possibility of a bounce, particularly if tariff expectations soften or Trump agrees to lower tariff rates. The market also has several indicators of a potential upcoming rebound, such as poor sentiment, high volatility and the S & P 500 trading down roughly 18% from its high, Lefkowitz pointed out. .SPX 1Y mountain S & P 500 performance over the past year. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
