According to Manish Kabra, Head of US Equity Strategy at SG, Wall Street is currently benefiting from a genuine multi-factor 'boom'.

Based on the bank's calculations, 85% of S&P 500 companies reported first-quarter results that beat expectations. This represents the highest beat rate observed in five years. Meanwhile, margin expansion now extends to 64% of the index's sectors.

SocGen further highlights that 73% of business segments are expected to post double-digit earnings growth. Finally, in a sign of prevailing optimism, the financial community has raised 12-month forward earnings estimates by 8%, while revenue forecasts have been revised upward by 4%.

AI, the central driver of investment

Societe Generale also emphasizes the persistent strength of AI demand after major technology groups specializing in cloud infrastructure, the 'hyperscalers', reported results that significantly exceeded expectations.

SG notably points out that AI-related capital expenditure forecasts for 2026 have been raised to 755 billion dollars, up from 669 billion dollars prior to the earnings season, representing an increase of approximately 80% compared to 2025.

The bank now views AI spending as the primary catalyst driving risk appetite.

Resilience to oil and the political context

While many investors question the strength of global equity markets amid surging oil prices, SocGen downplays this risk.

A potential oil shock is unlikely to be long-lasting, as the U.S. election calendar and the prospect of the autumn polls limit, in its view, the risk of a prolonged conflict.

'With a political agenda favoring de-escalation, the environment remains supportive', the bank asserts.

Toward an acceleration of the rally?

While the profit boom alone justifies a bullish stance on the S&P 500, Societe Generale believes the market could shift into an even higher gear in the coming months.

Should the Federal Reserve proceed with future rate cuts, the already bullish market could well transform into a 'raging bull' rally, the bank predicts.