Equity Outlook Q2 2026: Global Growth Holds Firm As Geopolitical Risk Simmers
Neuberger Berman remains constructive on risk assets due to ongoing global industrial rebound and broadening earnings growth despite geopolitical conflicts. The firm expects U.S. consumption to be supported by payroll growth and the USD to continue weakening as global growth rebounds.
Neuberger Berman is optimistic about risk assets due to a global industrial rebound and broadening earnings growth. Despite ongoing geopolitical conflicts, the firm believes the fundamental case for global economic growth remains intact. U.S. consumption, which accounts for roughly 70% of U.S. GDP, is expected to be supported by payroll growth. In 2026, value stocks and small caps have outperformed growth stocks and large caps. The firm expects the USD to continue weakening as global growth rebounds, potentially benefiting emerging market stocks. Fiscal and monetary policy, along with increasing private-sector capital expenditure driven by AI-related investment, are expected to support growth.
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