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The pressure for a pullback in the US stock market is increasing, and UBS suggests a strategic allocation.
With economic data weakening, the US stock market may face pullback pressure in August. Last week's employment data fell short of expectations, raising concerns about an economic slowdown. UBS strategists pointed out that the market's downturn may continue until the Fed signals a rate cut—UBS expects this policy shift to materialize in the coming months. Despite short-term pressures, the institution views the current adjustment as a strategic Build a Position window.