S&P 500 LIKELY TO MOUNT COMEBACK IN COMING WEEKS ON EASING POLICY UNCERTAINTY: UBS UBS expects the S&P 500 to rebound next month as trade policy uncertainty eases. The recent correction, a 10% drop in just 22 days, was unusually fast, driven by tariff concerns and high investor sentiment. UBS analysts believe the Trump administration will clarify trade policies soon, avoiding recession risks. Historically, corrections in bull markets present buying opportunities—S&P 500 gains after a 10% drop average 8% in 3 months, 13% in 6 months, and 19% in a year. Momentum stocks, especially tech, were hit hard, but this has helped reset investor positioning. UBS sees a favorable risk-reward outlook over the next three months, noting that bear markets occur roughly every seven years, with the last one three years ago.