Top of main content

US Perspectives: US Equity Monthly: February

Regional Outlook
This insight is about
Perspectives
Equities
US
Earnings
AI

US Perspectives: US Equity Monthly: February

by Jose Rasco, CIO, Americas, HSBC Private Bank and Premier Wealth & Michael Zervos, Investment Strategist, HSBC Private Bank and Premier Wealth
Mar 2, 2026

Highlights: We remain overweight on US equities which continues to offer superior earnings growth, AI leadership, durable revenue expansion, strong corporate balance sheets, policy stability, and a stimulative fiscal backdrop. The One Big Beautiful Bill Act (OBBBA) provides new research and production tax credits, improved depreciation schedules, more expansive tax cuts, and more domestic investment incentives that should boost production and investment spending as well as consumer spending. Lower policy rates are accretive to corporate earnings and should help keep valuations in check. Earnings momentum remains strong as S&P 500 earnings are projected to accelerate further from last year’s historic growth rates. 

  • Revenue growth remains firm, with the fourth quarter marking one of the strongest revenue growth prints in recent years. Ten sectors are reporting y-o-y revenue growth, highlighting broad demand resilience
  • The AI capex cycle remains durable as the US leads in artificial intelligence development and deployment. Capital expenditure across semiconductors, hyperscalers, software, and infrastructure remain elevated, supporting both near-term earnings and longer-term productivity gains. Productivity gains support margins as technology-driven efficiency improvements are beginning to translate into margin resilience, reinforcing corporate profitability even in a restrictive rate environment
  • Breadth is improving beneath the surface as earnings and revenue growth are not confined to mega-cap tech names. Cyclicals, Industrials, and Communication Services are contributing meaningfully, reducing concentration risk
  • The OBBBA is one of the most impactful tax and investment policy packages in recent years. It permanently extends lower individual tax rates, delivers meaningful deductions for workers and seniors, expands incentives for business investment, and shifts regulatory focus in a way that supports domestic production, especially in semiconductors and capital-intensive industries. The OBBBA sets a more predictable and pro-growth foundation for the US economy entering 2026, reinforcing our overweight case for US equities

This is a marketing communication from HSBC Private Bank, which is the main private bank business within the HSBC Group. Private banking services are delivered by various HSBC companies around the world, depending on local laws and regulations. The services described in this document may be provided by different HSBC entities, and members of the HSBC Group may also trade in the products mentioned here.

 

This document is not independent investment research under the European Markets in Financial Instruments Directive (‘MiFID’) or other relevant regulations and is not subject to restrictions on dealing ahead of its distribution. This means HSBC and its staff may have an interest in the products or services mentioned before this document is shared with you.

 

The information in this document is for general information only and is intended for HSBC Private Bank clients. It does not constitute, and should not be construed as, legal, tax or investment advice, or a solicitation, offer, or recommendation to buy or sell any financial products or services.

Some HSBC offices may act only as representatives of HSBC Private Bank and are not permitted to sell products, provide services, or offer advice to customers. Not all products or services are available in all jurisdictions. For a complete list of HSBC Private Bank entities and their regulatory status, please visit our HSBC Private Bank website.

 

Before proceeding, please refer to the full long macro disclaimer and the Terms and Conditions available at HSBC Private Bank website which provide further important information about the use of this material.
Back to top 

Related Insights

Listening to what you have to say about services matters to us. It's easy to share your ideas, stay informed and join the conversation.

© Copyright HSBC Private Bank 2026. All rights reserved