CITIC Securities says S&P 500 and Nasdaq valuation percentiles have fallen materially from cycle highs while full-year US earnings estimates continue to be revised up, leaving valuation–earnings alignment still attractive. For H2 it recommends focusing on four sectors: technology, defense, energy infrastructure and financials (banks and fintech), with fundamentals expected to drive market action.

2026-06-25

CITIC Securities says S&P 500 and Nasdaq valuation percentiles have fallen materially from cycle highs while full-year US earnings estimates continue to be revised up, leaving valuation–earnings alignment still attractive. For H2 it recommends focusing on four sectors: technology, defense, energy infrastructure and financials (banks and fintech), with fundamentals expected to drive market action.