Global Stocks Reach Record Highs Amid Strong Earnings Growth

Global stock markets continue to hit new highs amid a strong earnings season, with the S&P 500 and FTSE 100 reaching record levels driven by better-than-expected corporate profits. U.S. companies have reported average earnings growth of nearly 12%, significantly surpassing analyst forecasts, while major UK firms like Aviva and Admiral have also exceeded expectations. Fund managers are displaying notable bullishness, increasing their allocations to global equities for the fourth consecutive month, and cash holdings are nearing historic lows. Despite ongoing challenges such as trade tensions, inflation, and geopolitical conflicts, including discussions at the White House involving President Trump, investor confidence remains robust, and mentions of recession by S&P 500 executives have decreased. Key economic indicators like the upcoming Purchasing Managers’ Index (PMI) data are highly anticipated as they will provide insight into inflation and economic activity amid tariff impacts. Additionally, important corporate earnings reports, including those from Home Depot, Amer Sports, and Toll Brothers, are expected to influence market movements in the near term.