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A more complicated picture for the next stages of AI development and renewed geopolitical volatility have kept equities in check recently. But if unusually energetic earnings estimates for 2026 and 2027 prove achievable, more upside ahead is likely.
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Middle East stress comes and goes, and could come back again. But corporate profit results and the earnings outlook tend to have a more enduring impact on U.S. stock market performance. We assess the earnings trends and future prospects.
