UBS: Will the start of the US earnings season support a broadening equity rally? (Highlights)

13 July 2026 Global equities have delivered strong gains year to date, with the MSCI All Country World up 11% so far.

But last week highlighted a growing divergence between regions.

The S&P 500 rose 1.2%, supported by resilience in technology shares and a recovery in semiconductor stocks.

By contrast, the Stoxx Europe 600 fell 1.8%, its largest weekly decline since April, as European markets proved more sensitive to higher energy prices and geopolitical risks.

Market leadership has also continued to broaden beyond a narrow group of megacap technology companies, with sectors including health care and financials performing well over the past month.

This week, the second-quarter earnings season begins.

Investors will be looking for signs that earnings growth remains healthy across a broader range of sectors, rather than relying on a handful of technology companies.

Results from five large American financial services firms should provide insight into capital markets activity, lending conditions, credit quality, and consumer resilience.

Results from key semiconductor companies, including equipment maker ASML and the world's largest foundry TSMC, will also offer an early test of whether AI-related investment spending remains strong throughout the technology supply chain.

We believe earnings growth can continue to support equity markets, but the next phase of gains is likely to involve a broader set of sectors and regions.

Investors should diversify across sectors and regions to capture a wider opportunity set and reduce concentration risk stemming from the rapid rise in a handful of large-cap US tech stocks.

In the US, we continue to see opportunities in consumer discretionary, financials, health care, industrials, and utilities.

Mark Haefele, Global Wealth Management Chief Investment Officer, UBS Switzerland AG