About this episode

The episode discusses changes to S&P 500 sector views and the outlook for earnings growth.

The big things you need to know: First, we are making several changes to our S&P 500 sector views with upgrades to Tech to overweight and Consumer Discretionary to market weight, alongside downgrades of Communication Services to market weight and Utilities to underweight. Second, the expected growth rate for 2Q26 S&P 500 EPS has continued to drift up ahead of reporting season, but trends in beat rates and EPS revisions have been mixed. Third, on our broader outlook we’re on guard for a shift back into US and mega cap Growth leadership.

Topics covered

• S&P 500
• sector views
• earnings growth
• market outlook
• investment strategy

Keywords

• S&P 500
• sector recommendation
• Tech
• Consumer Discretionary
• earnings growth
• reporting season
• market weight
• underweight
• growth leadership

Mentioned in this episode

Organizations: RBC Capital Markets, S&P 500, Tech, Consumer Discretionary, Communication Services, Utilities

More episodes of RBC's Markets in Motion

• Mixed EPS Stats, Cautiously Optimistic Commentary · July 21, 2026 · 6 min
• June Survey Results Reveal Optimism, Not Euphoria, Heading Into 2H26 · July 7, 2026 · 5 min
• Mid-Year Outlook Update · June 29, 2026 · 7 min
• Down the Valuation Rabbit Hole · June 15, 2026 · 7 min

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