The Point for North America

Research evidence excerpt

The Point for North America

Point |

Thursday, 02 July 2026

Morning Call Highlights | Company | Industry | Economics & Strategy | Fixed Income & FX | Key Rating

and Target Price Changes

Morning Call Highlights Must Read

North America - Road Ahead 2H26 North America Road Ahead 2026 -

We remain constructive on the full year US equity outlook, having recently lifted Navigating a Multi-Lane Highway

our S&P 500 base case year-end target to 8100. This is predicated on above

consensus index earnings estimates of $350 and $400 for ’26 and ’27

respectively, with recent upside to these estimates driven by Semis and Hardware.

Headed into 2H we expect the broadening theme to assert. A wind down of the

Iran conflict with read throughs per lower oil and, potentially, inflation concerns

sets up for a repositioning consideration. Citi Economists project mostly resilient

economic conditions, with a growing impact from AI investment. Fed rate hike

fears may be overblown. Commodities strategists see lower oil. Our Quant team

favors growth. While AI tailwinds will remain critical to the US equity narrative, we

see opportunity in stock selection across industries, thus making our Mid-Year

Road Ahead a must read for clients.

Scott T Chronert | Nathan Sheets | Andrew Hollenhorst | Richard W Schlatter | Maximilian J Layton

North America Internet - Meta Compute Unlocks Capacity (and FCF) for Meta's

Superintelligence Ambitions

With the potential launch of Meta Compute, per Bloomberg, Meta appears to be

planning to offer access to its AI compute and infrastructure, including the

potential to offer multiple models, similar to AWS’ Bedrock. CEO Zuckerberg

suggested this could be an option at Meta’s annual shareholder meeting in May