Stock markets will remain volatile over the next few months despite their July rebound, according to UBS

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UBS believes the stock market could remain volatile over the coming months as new batches of economic data lead to heightened levels of uncertainty.

The $1.1 trillion asset manager’s chief investment officer, Mark Haefele, said July’s market rebound was unlikely to be sustainable in a recent research note.

“We caution investors to read too much into July’s somewhat more positive picture,” he said. “There remains far too much uncertainty and markets could remain choppy in the months ahead.”

The SP 500 and MSCI World index rose 9.1% and 6.9% respectively last month, with investors particularly buoyed by comments from Federal Reserve Chairman Jerome Powell that the US central bank will take a data-driven approach to raising interest rates.

But Haefele said August and September could prove much more uncertain, with the Fed expected to receive a significant amount of new data ahead of its next meeting.

“There are nearly two months of economic data between now and the next Federal Open Market Committee meeting on Sept. 20-21 for markets to digest,” he said. “So we remain neutral on equities.”

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