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Weekly inflows into US equity funds reached nearly $64 billion, the largest in three months per Bank of America citing EPFR Global data, even as BofA strategists Jared Woodard and Michael Hartnett warned that positioning is already too bullish for the profit growth trajectory ahead.
Into that setup, Goldman Sachs strategist Ben Snider published a note arguing that fears of an earnings bubble in the S&P 500 are misplaced, with AI capital spending and the broader economic backdrop holding up current profitability.
Profits at S&P 500 companies grew roughly 30% in each of the first two quarters, Bloomberg Intelligence data show, among the strongest showings on record.
Full-year expectations are running at their highest since the post-Covid rebound in 2021.
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