“It’s way too early to apply the brakes on the US stock rally,” said Manish Kabra, head of US equity strategy at Societe Generale SA. “The momentum has been backed up by the earnings outlook, and I expect that to continue for at least one more quarter.”
Move over interest rates, it’s time for corporate earnings to fuel the next leg of the record-breaking stock market rally.
Wall Street strategists are optimistic that Corporate America will deliver another bumper earnings season as global economic growth picks up. Even pricey technology stocks — the primary profit engine in the previous quarter — are again expected to be supported by solid results. So while the S&P 500 Index is coming off its best first quarter in five years and continues to trade near its all-time high, market experts are reluctant to bet against further gains.
