US Strategy Views Supply And Demand

The S&P 500 bull market remains intact, supported by strong corporate earnings and sustainable AI infrastructure investment. Despite elevated volatility and high valuations, fundamental growth is expected to drive the index to 8000 by year-end.

Key Takeaways

• 1.S&P 500 earnings growth remains the fundamental engine for the bull market, with an 8% rise expected by year-end.
• 2.Corporate equity issuance in 2026 is manageable and expected to be outweighed by $1 trillion in gross buybacks.
• 3.AI hyperscaler capex is projected to reach over $750 billion in 2026, driving a significant portion of EPS growth.

Table of Contents

• US EQUITY OUTLOOK
• EQUITY ISSUANCE
• INDEX INCLUSION
• MARKET VOLATILITY
• INVESTOR SENTIMENT
• VALUATIONS
• EARNINGS
• AI
• RISKS