Aug. 6 (Bloomberg) -- UBS AG cut its year-end forecast for the Standard & Poor's 500 Index by about 3.1 percent to 1,550 on concern the slowing U.S. economy will prolong the slump in earnings at financial companies.

David Bianco, the New York-based chief equity strategist at UBS, also reduced his 2008 per-share profit estimate for S&P 500 companies to $85 from $92 and lowered his 2009 projection to $95 from $102, according to a note to clients today.

Bianco's new forecast amounts to a 21 percent gain for the U.S. equity benchmark index from its close yesterday at 1,284.88. His prediction is 6.6 percent higher than the 1,454 average forecast of nine other Wall Street strategists who provide year- end estimates to Bloomberg News.

Bianco told Bloomberg News last month he expected the S&P 500 to rise to at least 1,600 by the end of this year.

To contact the reporter on this story: Michael Patterson in London at mpatterson10@bloomberg.net.

Last Updated: August 6, 2008 08:58 EDT