Bloomberg Surveillance · Wednesday, August 5, 2026
Despite rising oil prices and yields, the market is predicted to end the year higher, with the S&P 500 reaching 8,000. This optimism is fueled by a reacceleration in the capex cycle, strong earnings growth of 30%, and a debunked 'earnings bubble' theory. The market has overcome key questions regarding the impact of war, oil prices, and hyper-scaler spending, paving the way for continued gains.
“Look. We think the market ends higher at the end of the year, we're in prints at eight thousand. I think it's probably moving higher. The forward earnings growth rate right here of the S ANDP is actually thirty percent.”
“The answer is yes, it can. The second thing was is there ROI on hyper scale or spending? Are they just spending into oblivion funding the balance sheets of every other company but not themselves as they go freach pretty cashful negative turns out, actually there's a business case for it, and their cycle reaccelerated through the growth rate. So that was answered as well. And so you've gotten two major questions out of the way. And then the third is this an earnings bubble? And the answer is. No, it is not, because you've got accelerated growth rates for the spenders and that once you've answered that question, it's pretty much clear out there.”