Strong Q1 tech earnings boost AI investment confidence, UBS keeps positive US equity outlook.

Five major tech giants reported strong first-quarter results, reinforcing UBS's positive view on AI-related investments. UBS highlights accelerated cloud revenue growth and increased data center spending, with Alphabet planning significant capital expenditure through 2027. Nearly 80% of S&P 500 companies have beaten sales and earnings estimates, pushing the S&P 500 to record highs. UBS maintains a year-end S&P 500 target of 7,500 and sees corporate profit growth as key, noting energy flow resumption from the Middle East as an important factor for further market gains.