US Equities: Tech, Earnings and Midterms

Market resilience persists despite rising bond yields and geopolitical concerns, driven by robust corporate earnings and sustained AI demand. US equity growth remains strong, with Q3 earnings expected to mirror the 34% year-over-year expansion seen in Q2. While tactical rotations out of tech occur due to positioning and performance asymmetries, broad-based growth outside of AI continues to support the market. Higher interest rates have not suppressed equity multiples because rate increases often reflect improved growth expectations rather than purely inflationary pressures. Looking ahead, market participants are monitoring US midterm elections, upcoming G10 central bank policy decisions, and the Treasury’s quarterly refunding announcement. These events serve as the next major catalysts for market direction as investors navigate ongoing volatility and search for stability in a high-rate environment.