On May 15th, David Lefkowitz, the head of US stocks at UBS Global Wealth Management, downgraded his rating on US stocks from “attractive” to “neutral”. In a report on May 13th, Lefkowitz wrote that investors seem to have “taken into account the significant easing of trade frictions” and believe that the risk return of the US stock market is more balanced, with the S&P 500 index currently above its level on April 2nd. Due to the recent upward catalyst in the US stock market appearing “less widespread” and despite reduced uncertainty, the economy still needs to adapt to higher tariff levels, and economic data “seems to be trending towards weakness” in the coming months. Although Lefkowitz downgraded the US stock rating to neutral, he still believes that the bull market is “intact and the stock market may further rise next year”. But the economy will have to adapt to higher tariffs, which could lead to a period of weak economic data that could cause moderate resistance to the stock market.
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