Earnings momentum is strong and is likely to remain so despite the war in Iran. Given the drivers of U.S. economic growth remain in place and the U.S. is energy independent, double-digit earnings growth in 2026 remains likely and will likely put a strong foundation underneath the stock market until the geopolitical threat eases, helping to mitigate downside risk.

S&P 500 Earnings Estimates Have Been Rising Steadily Despite AI, Mideast Concerns

source: lpl.com/research