Société Générale
February 9, 2026
Global Equity Market Arithmetic
Market ReportEquitiesMacro Economic IndicatorsCommunication ServicesConsumer Staples
The report highlights a significant rotation from AI-centric growth stocks into 'AI-immune' quality income sectors as the US valuation premium faces pressure from accelerating earnings growth in the rest of the world.
Key Takeaways
- 1.A major rotation is occurring from 'new' economy AI-disrupted sectors into 'old' economy AI-immune sectors like Utilities and Food.
- 2.World ex-US earnings growth is expected to outpace the US in 2026, leading to a preference for Value over Growth factors.
- 3.AI is increasingly viewed as a potential threat to human-intensive and capital-light industries rather than a pure benefit.
Table of Contents
- Market performance
- Market & factor index performance
- Sector performance
- Market P/E ratios and growth
- Sector P/E ratios by region
- Sector EPS growth by region
- Country P/E ratios and EPS growth
- Regional EPS momentum
- US sales, profit, and margin diffusion indicators
- US consensus quarterly earnings
- Monthly factor performance
- Year-to-date factor performance
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Authors
Andrew LapthorneGeorgios OikonomouLaura Tossan
Securities
NDXSPXMXWO
Themes
AI Disruption vs. ImmunityGrowth to Value RotationUS Earnings De-rating
Regions
GlobalNorth AmericaEuropeUnited StatesUnited KingdomJapan