Highlights: We remain overweight US equities as strong earnings growth, accelerating AI investment, and resilient economic fundamentals continue to support a constructive outlook. We believe the AI investment cycle remains in its early stages, with record spending on data centres, digital infrastructure, and advanced manufacturing helping drive a broad-based capital expenditure boom. We hold a full overweight on global and US Technology, reflecting improving earnings expectations and a meaningful valuation reset that has largely eliminated the sector’s historical premium.

• US equities continue to benefit from one of the strongest earnings backdrops globally, with S&P 500 earnings expected to grow approximately 23 per cent in 2026 and earnings revisions remaining positive
• The AI buildout remains a powerful structural driver. Data centre construction spending has surged to record levels while hyperscaler capital expenditure plans are approaching USD800 billion, supporting growth across Technology, Industrials, Utilities, Materials, and Energy
• Earnings growth is broadening beyond the Magnificent 7. While mega-cap technology remains the primary earnings engine, profit growth is increasingly expanding across the broader market, supporting a healthier market breadth
• The US continues to attract global capital. ETF flows remain on pace for another record year, reflecting investor confidence in US innovation leadership, earnings growth and long-term productivity gains from artificial intelligence
• We continue to favour Financials, Industrials, Communication Services, Utilities, Materials, Energy, and Technology, supported by improving earnings momentum, AI-related investment, and the ongoing re-industrialisation of the US economy