Highlights: We remain overweight on US equities. Artificial Intelligence continues to drive a powerful structural growth cycle, supported by rising adoption, measurable productivity gains, and accelerating enterprise investment. We upgrade US Technology to a full overweight, reflecting improving earnings expectations and a meaningful valuation reset that has largely eliminated the sector’s premium. At the same time, earnings expectations for the broader market continue to rise, with technology leading.

• US equities remain supported by strong earnings growth, resilient domestic fundamentals, and structural leadership in technology, with earnings expectations continuing to trend higher
• Earnings growth remains robust and is currently projected at almost 19 per cent yoy according to FactSet as of 24th April. Structural drivers remain firmly in place. AI infrastructure investment, including data centres and energy co-location, continues to support capital expenditure cycles, reinforced by policy support such as tax incentives and accelerated depreciation
• The consumer backdrop in the US remains constructive as well, with stable labour markets and resilient real incomes helping offset pressure from higher energy prices
• Market leadership is broadening, with the “Forgotten 493” outperforming the Mag 7 year-to-date, signalling improving market breadth beyond mega-cap technology
• The Tech valuation premium has largely reset, creating a more attractive entry point as tech sector’s earnings growth continues to outpace the broader market
• The US continues to outperform global markets, supported by stronger earnings growth, economic resilience, and structural advantages in innovation and capital investment