Equity Outlook 2Q 2026: Global Growth Holds Firm As Geopolitical Risk Simmers

Persistent macro tailwinds and improving earnings breadth continue to support a constructive view on risk assets, even as geopolitical uncertainty clouds the outlook. Markets are being helped by resilient growth, easing inflation pressures, and a backdrop that still favors selective exposure to equities and credit.

At the same time, the fog of war can quickly shift sentiment and raise volatility, so discipline around valuation and quality remains important. Investors may find opportunity in areas with durable cash flow and pricing power while staying alert to policy shifts, supply shocks, and headline risk.