According to CoinMeta, UBS indicates that as the expectation of a Fed interest rate hike weakens due to softer data, the outlook for the stock market remains optimistic. The VIX index has dropped to its lowest level of the year, and the market is pricing in lower risk events over the coming weeks. UBS believes that improved earnings revisions and weakened interest rate hike expectations provide support for the market, rather than mere complacency. The firm expects that future data will show ongoing deflation, allowing the Fed to extend the pause on interest rate hikes, which will eliminate the persistent pressure on risky assets. Although geopolitical risks remain a major source of volatility, UBS believes that these risks are not sufficient to undermine the overall optimistic sentiment of the market on their own.