Market Growth & Consumer Spending - US Bank believes market watchers are overly bearish on growth, anticipating a more positive growth picture than economists currently project [1][6] - Consumer sentiment is incrementally improving, suggesting increased spending in the coming months and quarters [3] - Companies are scaling back deferral of decisions, contributing to a generally positive growth outlook [3][4] Inflation & Interest Rates - The US cannot afford to be an outlier on inflation, with economists forecasting inflation above 3% in September 2026, compared to sub 2% in developed and developing markets [5] - The bond market is seeing the long end climb higher globally, signaling potential stickiness of inflation [6][7] - US Bank views a 10-year Treasury yield between 4% and 5% as a healthy range; sub 4% signals a growth scare, while above 5% suggests underestimated inflation [8][9] - The current 10-year Treasury yield of approximately 435 (435 bps or 435/100 %) is considered a decent level for borrowing and potential resumption of economic activity [10] Global Equity Markets - Loosening of labor laws and increased "animal spirits" in Europe are viewed positively [11] - With central bank estimates anticipating rate cuts (excluding Japan), US Bank sees a favorable environment for involvement in global equity markets, particularly large caps [12]

Market Trends - Global equity markets are broadly defying persistent trade and geopolitical tensions [1] - The S&P 500 Index closes at a record high [1]