Summary

• Economic data and corporate results suggest the global economy remained resilient despite a host of events that could potentially disrupt global economies.
• The AI investment boom led to strong earnings growth, led by the technology sector. Data center demand for chips and power is expected to support semiconductors and hardware companies.
• We expect the global economy to re-accelerate later in the year, but that’s dependent on the timing of any resumption in energy flows through the Strait of Hormuz.

By Brian Levitt, Chief Global Market Strategist and Head of Strategy & Insights and Benjamin Jones, Global Head of Research, Strategy & Insights

While our 2026 annual outlook argued that firmer global growth would