Stocks Have Room to Rally Amid Earnings Support

UBS maintains a positive medium-term outlook for global equities, driven by robust earnings growth and AI adoption, despite near-term volatility from Middle East tensions.

Key Takeaways

• 1.Strong corporate earnings are expected to drive equity gains over the medium term, despite volatility from geopolitical tensions.
• 2.US earnings growth is broadening, with S&P 500 EPS now expected to grow 20% year over year.
• 3.Asian markets show broadening growth potential, moving beyond the AI hardware leaders (Korea/Taiwan) to mainland China and Southeast Asia.

Table of Contents

• From the studio
• Thought of the day
• A broadening of profit growth should support US equities
• What to watch: 27 May
• Market update
• Global asset class preferences definitions
• Appendix

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