Bloomberg Surveillance · Wednesday, July 1, 2026
Michael Purvis of Bloomberg discusses the remarkable year for US stocks, driven by exceptional earnings growth. Forward earnings estimates for the S&P 500 are up nearly 20% year-to-date, with projections suggesting a potential target of 9000 by year-end under a conservative scenario. Despite concerns about sticky inflation, Purvis argues that inflation historically does not necessarily reduce earnings and can even inflate them, with corporate earnings showing resilience and margins managing through inflationary periods.
“Yeah, Well, it's been a pretty remarkable year. Obviously, earnings growth has been exceptional. And what's even more distinctive about that exception exception earning s growth is that it came on the back not of an earning strough, but of a very strong twenty twenty five earnings there and you know, a lot of strategists are upgrading their price targets. But just to throw out a couple of quick numbers, here, forward earnings estimates per Bloomberg Consensus, the S and P five hundred are up nearly twenty percent year to day.”
“You take today's multiple on that twenty two times, and you're at nine thousand at the end of the year. Right, So you know there's a lot of like, oh my god, someone's upgrading to eight thousand. Well, it's not inconceivable to see nine thousand this year.”
“So so look, you know, if we're if we end up being you know, two percent real three percent inflation over the next couple of years, I think that's going to set the stage for you know, a pretty solid broadly speaking, economic conduction.”