HSBC Raises Outlook for US Equities Amid Accelerating Earnings Growth

Apr 29, 2026 17:06 UTC

SPY, QQQ

Medium term

HSBC strategists have upgraded their outlook for US stocks, citing a surge in corporate earnings growth. The shift is supported by strong buyback activity and a reduction in geopolitical tensions.

US earnings growth hit 14%, the highest since 2024
Strong corporate earnings beats driving the upgrade
Share buybacks providing valuation support
Reduction in Iran-related geopolitical risks improving sentiment

HSBC has issued an upgrade for US equities, pointing to a significant acceleration in corporate profitability. The bank reports that earnings growth has reached 14%, marking the fastest pace of expansion since 2024. This optimistic shift comes as strategists observe a combination of strong earnings beats across multiple sectors and aggressive share buyback programs, which continue to provide a strong support level for equity valuations. Beyond the balance sheets, the bank highlighted a cooling of geopolitical risks. Specifically, strategists noted that easing tensions involving Iran have contributed to a more favorable risk appetite among global investors, removing a key headwind for US markets. The upgrade suggests a bullish trajectory for broad US indices as fundamental growth aligns with a more stable geopolitical backdrop. Investors are likely to monitor whether this 14% growth rate can be sustained as the primary driver for further market upside.