UBS: Investors should prepare for potential market volatility in the coming weeks

ChainCatcher news, according to Zhito Finance, the UBS Wealth Management Investment Director's Office stated that since concerns over U.S. tariff policies peaked in April, the S&P 500 index has risen by nearly 30%. This reflects an increasing belief among investors that the U.S. will reach a compromise with major trading partners. Recent data also indicates that the U.S. economy has remained resilient, and market sentiment has been boosted by top tech companies continuing to increase capital expenditures in artificial intelligence.

UBS also warns that the significant rise in recent weeks has already reflected many potential positive news, and investors should be prepared for possible market volatility in the coming weeks. While the market will be encouraged by increased certainty in U.S.-European trade, the level of U.S. tariffs is still about six times higher than the general level before D-Day. The economic impact of these tariffs is currently becoming evident, and uncertainties regarding their scale, distribution, and second-order effects remain. The economic impact of tariffs at the industry level may be greater than at the national level.