CIO Weekly: Will Earnings Sustain Equities Momentum?

Investors are leaning heavily on corporate earnings to carry the equity rally, even as a wide range of macro risks remains in the background. That creates a fragile setup, because valuations already reflect strong profit growth and leave little margin for weaker results.

If earnings hold up, markets may continue to advance despite economic uncertainty and policy noise. But any disappointment could trigger a sharper pullback, since sentiment appears stretched and expectations are high.