A $10 Trillion Stock Market Rally Faces Crucial Test in Earnings

(Bloomberg) -- A near-$10 trillion rally for global stocks this year will face a make-or-break moment as hundreds of companies report earnings over the next few weeks. But with the bar already low — and some indicators suggesting an earnings recovery next year — strategists are split on how the market will react. “If enthusiasm for AI fails to adequately materialize in technology companies’ earnings, we could experience at least a temporary correction in share prices,” said Aneeka Gupta, director of macroeconomic research at WisdomTree. While cheaper valuations have made regional stocks attractive again for some, others say a dearth of technology stocks could keep the outlook choppy. Reports from the country’s automakers are expected to be a bright spot as domestic sales and exports gain momentum, while technology firms’ results may be weak as global chip markets remain lackluster.