Stock Market Outlook: 3 Themes For the Second Half of 2026

Capital Group

Rob Lovelace

Article

1 Pages

Capital Group examines the forces driving equities into the second half of 2026, arguing that earnings growth remains the market’s primary support. The piece highlights AI’s expanding economic footprint, emerging market opportunities, and a less discussed shift toward physical economy businesses. Investors may find it notable that emerging market earnings are projected to grow 49.2% this year.

Key Takeaways

Earnings Growth Dominates: Emerging market earnings are expected to rise 49.2% in 2026, compared with 5.2% for China, reinforcing the importance of fundamentals over sentiment.
AI Spending Accelerates: Five hyperscalers plan to invest $650 billion in data centers this year, while global AI investment could reach $30 trillion over the next decade.
Physical Economy Benefits: NVIDIA’s $5.1 trillion market value exceeds the combined $4.6 trillion value of the S&P 500 energy, utilities, and materials sectors.
VIEW FULL REPORT

Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week

Related Content

Investing in America
America at 250: A View from Capital Markets
Jul 2026
AI
The AI Economy: A Roadmap
Jul 2026
Data Centers
Must C: Overcoming Gridlock 2.0 — Solving Power Bottlenecks to Drive AI & Energy Security
Jul 2026

The information contained in this communication is of a general nature for informational purposes only, and does not constitute financial, investment, tax or legal advice. The information contained within this communication reflects the opinions of those referenced herein, and do not reflect the opinions of The Idea Farm, L.P. and its affiliates. Such opinions expressed herein are as of the date of production and are subject to change at any time without notice due to various factors, including changing market conditions or tax laws. Where data or information prepared by third parties is presented, no representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by The Idea Farm, L.P. or any other person. While such sources are believed to be reliable, The Idea Farm, L.P. does not assume any responsibility for the accuracy or completeness of such information and does not undertake any obligation to update the information contained herein as of any future date. Any links to third party websites are offered only for use at your own discretion. The Idea Farm L.P., and its affiliates, are separate and unaffiliated from any third parties listed herein and are not responsible for their products, services, policies or the content of their website. All investments are subject to varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy or product referenced directly or indirectly in this communication will be profitable, perform equally to any corresponding indicated historical performance level(s), or be suitable for your portfolio. Past performance is not an indicator of future results.

Scroll to Top