Earnings, not elections, drive markets
SPY•SPY•SPY•SPY•U.S. indexes advanced, with the Nasdaq up about 2.6%, as all S&P 500 sectors rose. Humilis Investment Strategies’ Brian Belski said earnings remain supportive, citing 31.4% blended third-quarter growth and projected full-year 2026 growth of 33.3%.
Brian Belski, chief executive and chief investment officer at Humilis Investment Strategies, said investors should focus on fundamentals rather than election results or political preferences. He said volatility may remain elevated as markets assess the elections and data center spending, but he sees little evidence that the broader earnings story has deteriorated.
Blended third-quarter earnings growth for the S&P 500 is running at 31.4%, while full-year 2026 earnings growth is projected at 33.3%. The index’s forward 12-month price-to-earnings ratio has fallen to 17.7, below its five-year average of 19.8 and 10-year average of 19.1. Belski said slower earnings growth would not necessarily mean shrinking profits.
