Stock market outlook: 3 themes for the second half of 2026

If you take your cues from the daily news headlines, you can find any number of reasons to feel squeamish about the stock market.

Those feelings may be misplaced, however. Thus far in 2026, stock markets have reached a series of new highs amid wars in the Middle East and Ukraine, fluctuating oil prices and elevated inflation. Why have stock markets shown such strength? It largely comes down to a simple yet critical factor: corporate earnings are on a tear.

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