Market perspectives

Consumer sentiment improved in July but remains subdued as many households continue to feel the lingering effects of inflation and economic uncertainty.

Q2 GDP growth slowed to 1.5%, but stronger consumer spending suggests a healthy rebalancing within the economy and a growth outlook that’s less reliant on AI-related investment.

While stock market valuations remain elevated, corporate earnings have been surprisingly robust. Whether today’s earnings strength can prove durable as the current market cycle matures remains a question.