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Barclays, UBS Say Neither Fed Nor Virus Will Derail This Rally

  • Strategists reiterate bullish calls in the face of uncertainty
  • Stocks resumed advance, amid omicron, Fed-induced volatility

More hawkish rhetoric from the Federal Reserve and the spread of the omicron variant are unlikely to derail the rally in stock markets, strategists at Barclays Plc and UBS Global Wealth Management said Tuesday, adding to a chorus of bullish calls after a turbulent few weeks. 

The “global economy has learned to live better with each wave of Covid, and we expect the pattern to broadly stay consistent with this variant,” Barclays strategists led by Matthew Joyce wrote in a note to clients. And while the Fed has “reset expectations” in recent weeks with regard to withdrawing its stimulus, it “is unlikely to over-deliver on the rate hikes already priced in,” according to the strategists.