FILE PHOTO: A logo of Swiss bank UBS is seen in Zurich, Switzerland, May 1, 2025. REUTERS/Denis Balibouse/File Photo

(Corrects paragraph 8 to say 2026 mid-year index target is 6,800 and not 6,600)

(Reuters) -UBS Global Wealth Management lifted its year-end target for the S&P 500 index for the second time in two months, betting on corporate earnings strength, easing trade tensions and expectations of interest-rate cuts.

It raised the target to 6,600 from 6,200, implying an upside of 3.6% to the index's last close at 6,370.17. In late June, wealth management arm of UBS bank had increased the goal to 6,200 from 6,000.

Earlier this month, major brokerages, including Citigroup and HSBC, had ramped up their index targets.

After hitting their lows in April following President Donald Trump's "Liberation Day" tariffs, U.S. equities have been on a rally, thanks to resilient corporate earnings fueled by the AI boom.

As of August 15, 459 companies in the S&P 500 have reported quarterly earnings, of which 80.2% have reported earnings above analyst estimates, according to LSEG estimates.

"The bull market is intact and stocks will likely rise over the next year," UBS strategists said in a note dated August 21.

However, they maintained their 'neutral" stance on U.S. stocks, given "the market may be pricing in a lot of optimism already on trade developments, lack of near-term catalysts, and elevated valuations".

UBS also raised the index's annual estimates for earnings per share to $270 from $265. It lifted the 2026 mid-year index target to 6,800 from 6,500 and EPS forecast to $290 from $285.

Investors will also be assessing Federal Reserve Chair Jerome Powell's address at the Jackson Hole Symposium due later on Friday for clues on the interest-rate path.

(Reporting by Siddarth S in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur)