Global Equity Views 2Q 2026

Equity markets have quickly moved past the latest geopolitical shock and are now being led by the AI investment boom, which is supporting profit growth across regions.

The outlook remains constructive, but higher valuations and signs of speculation, especially in U.S. small caps, argue for a neutral stance rather than chasing momentum.

Earnings are improving in the U.S., Europe, Japan and emerging markets, yet much of the upside still depends on AI-related spending and a few other strong sectors.

That backdrop is creating selective opportunities in misunderstood “AI losers” with resilient fundamentals, while quality stocks also look more attractive after a long period of weak performance.