JP Morgan's Abby Yoder: Global earnings growth into 2026 driven by tech strength

Market Sentiment - The market is currently optimistic about any positive developments regarding China trade, which is expected to be well-received [1] - Recent market movements indicate a lack of significant downturns, with a notable negative impact from trade tensions, particularly affecting AI-related sectors and economic growth [2][6] Economic Indicators - Upcoming government data is anticipated to influence market sentiment, contributing to some jitters among investors [4] - October is historically a challenging month for the stock market, with a focus on earnings reports from large-cap tech and AI companies [5] Sector Performance - Defensive sectors, such as healthcare and utilities, have shown outperformance in October, which may indicate a rotation in investment strategies [5][14] - Despite recent momentum unwinding, the overall market remains up, suggesting a rotational move rather than a broad distribution [10][12] Global Market Trends - Global markets, including China, Japan, and Europe, are reaching new highs, indicating resilience despite local challenges [12] - The performance of consumer stocks appears to be improving, countering concerns about domestic economic conditions [7] Momentum and Market Dynamics - The current market is experiencing its first potential negative month in seven, with discussions around whether this momentum unwind is complete [9][15] - The breadth of the market remains relatively strong, with a significant percentage of companies still above their 200-day moving average, suggesting a consolidation phase rather than a corrective one [15][16]