Ameriprise sees earnings growth supporting stocks after midterm elections
AMP•Ameriprise Financial expects economic growth and corporate profits to drive stock prices over the next 12 months, with third-quarter S&P 500 earnings growth around 30% year over year and double-digit growth expected next year.
1. Earnings and election outlook
Ameriprise Financial expects economic growth and corporate profits to outweigh congressional control as drivers of stock prices over the next 12 months. It said third-quarter S&P 500 earnings growth is roughly 30% year over year, with double-digit growth expected next year. Shifting sentiment on AI and higher interest rates pose larger threats to market sentiment and fundamentals heading into 2027. A Democratic House and Republican Senate would likely prompt limited initial market reaction because that outcome is largely priced in.
