BofA aggregate data show S&P 500 Q3 earnings expectations remain strong, but 10
of 11 sectors are projected to see slower earnings growth versus the prior
quarter. Analysts forecast S&P 500 constituent earnings growth to slow from 25%
in 2026 Q3 and 28% in 2026 Q4 to 18% in 1H 2027, indicating modest weakening in
forward momentum. Slowing earnings growth alone may not halt the rally, but with
US equities near record highs and growing concern that inflation could be
stickier than expected, companies will need materially strong results to lift
the market further. Pictet Asset Management chief strategist Luca Paolini said:
"We see early signs that earnings momentum may be peaking. With expectations so
elevated, even slight misses could trigger strong market reactions."
