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Mon, February 10, 2025

Earnings growth should drive stocks higher, but beware tariff- and policy-inspired volatility: UBS


Published on 2025-02-10 10:41:10 - MarketWatch
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  • It's past the peak of earnings season and results have been largely favorable, with 60% of companies so far beating sales estimates and 75% beating earnings estimates, noted David Lefkowitz, head of U.

The article from MarketWatch discusses UBS's outlook on the stock market, suggesting that despite potential volatility due to tariffs and policy changes, earnings growth should propel stock prices higher. UBS analysts highlight that while the market has been volatile due to trade tensions, particularly with China, the underlying earnings growth remains robust. They caution investors to be prepared for short-term fluctuations driven by policy announcements or tariff news but maintain an overall positive long-term view on equities. The piece also notes that the S&P 500 earnings are expected to grow, supporting the argument for a higher market valuation, although investors should remain vigilant about geopolitical risks and policy shifts that could affect market sentiment.

Read the Full MarketWatch Article at:
[ https://www.marketwatch.com/livecoverage/stock-market-today-dow-s-p-500-and-nasdaq-set-for-partial-recovery-from-friday-s-losses/card/earnings-growth-should-drive-stocks-higher-but-beware-tariff-and-policy-inspired-volatility-ubs-G0D19yEINjDkEzCEWKBw ]
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