HSBC analysts cite 10%+ sector-wide earnings growth forecasts for 2026, led by AI-driven demand, supporting US equities.
US equities remain supported by solid earnings growth across most S&P 500 sectors, driven by AI-related demand and data center expansion. Analysts note valuations remain reasonable despite recent volatility tied to mega IPOs and profit-taking.
Consensus forecasts project over 10% earnings growth for 2026 in most sectors, with a 23% overall increase, excluding Consumer Staples and Real Estate. Energy and Materials sectors are also benefiting from AI infrastructure buildout.
Analysts maintain an overweight stance on US equities, viewing short-term volatility as a buying opportunity. They remain bullish on the USD and recommend diversification with bonds, gold, and alternative assets.