State Street Investment Management
May 19, 2026
Mind on the Market
Weekly UpdateEquitiesRates Govt BondsCommoditiesInformation TechnologyEnergy
While equity duration matters, global market leadership is currently determined by earnings durability, with the U.S. and tech-heavy emerging markets outperforming due to resilient cash flows.
Key Takeaways
- 1.U.S. equity leadership is being driven by earnings durability rather than just duration sensitivity, allowing it to outperform other regions post-war.
- 2.Emerging Markets excluding China are seeing massive earnings growth, specifically a 192% year-over-year increase in the IT sector driven by semiconductors.
- 3.Regional markets exhibit distinct 'equity duration' profiles, with the U.S. having the highest duration and the UK having the lowest.
Table of Contents
- Chart of the Week
- Weekly Highlights
- Equity Duration Matters, but Earnings Decide
- About State Street Investment Management
- Important Risk Information
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Authors
Christine NortonDane Smith
Securities
Samsung2330.TWSK HynixMSCI Emerging Markets ex-China IndexKOSPI
Themes
Equity Duration and Interest Rate SensitivitySemiconductor-Led Earnings GrowthRegional Divergence Post-War
Regions
North AmericaEuropeAsia PacificUnited StatesChinaJapan