UBS pointed out that historically, the stock market performs best when the Federal Reserve cuts interest rates during non-recession periods. According to data since 1970, when the economy has not entered a recession and the Federal Reserve cuts rates, the average annualized return of the S&P 500 index is 15%. UBS stated: "We believe that the macro environment may continue to be in the most favorable state in early next year, supporting the next round of stock market gains amid strong corporate earnings."