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      JPMorgan Predicts Strong Q3 Earnings to Bolster Global Stock Markets

      JPMorgan strategists anticipate that third-quarter earnings will provide significant support for global stock markets, with expectations of profit strength extending beyond the artificial intelligence sector. Led by Mislav Matejka, the team believes that despite recent market volatility, the fundamentals of earnings will prevail, reassuring investors. The consensus for earnings per share growth in the S&P 500 is projected at 24%, with some estimates reaching as high as 30% due to adjustments related to a one-off tax charge at Meta.

      In Europe, the earnings growth consensus stands at 19%, which drops to 11% when excluding energy sectors. The median revenue growth for both the S&P 500 and the Stoxx 600 is reported at 7%. The strategists highlight that global purchasing managers' indexes have reached multi-year highs, indicating a strong earnings outlook. They also note that operating margins in Europe are expected to be around 14% of sales this year, significantly above pre-pandemic levels, although sectors such as staples, autos, and software are lagging behind.

      JPMorgan remains optimistic about sectors such as semiconductors, banks, chemicals, and industrials, despite recent deratings in European banks and French equities. The bank suggests that if bond yields peak as the earnings reporting season commences, it could lead to a positive shift in equity markets as investor focus transitions from September's volatility to more stable fundamentals. Overall, the outlook for the upcoming earnings season appears promising, with expectations of continued growth across various sectors.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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