According to UBS, the S&P 500 could surge to 5,500 by 2024, driven by cooling inflation and a boom in artificial intelligence (AI) investment. The forecast comes as the stock market has rallied this year, with the S&P 500 up over 15% year-to-date. UBS expects the Producer Price Index (PPI) to continue declining, signaling easing inflationary pressures. Additionally, the firm anticipates a surge in AI investment, which could boost productivity and corporate earnings. UBS cites the rapid adoption of AI tools like ChatGPT as a catalyst for this investment boom. The forecast highlights the potential for further stock market gains, fueled by moderating inflation and the transformative impact of AI on various industries.
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