S&P 500 Still Has Legs To Run

Summary I maintain a Buy rating on the S&P 500, seeing no imminent recession despite recent macro volatility and a hawkish Fed hike. Extraordinary earnings growth, with Q2 S&P 500 profits up over 50% YoY and rising analyst estimates, underpins my bullish stance. AI CAPEX is peaking, and operating leverage from built-out capacity should drive a significant free cash flow cycle from 2028 onward. Forward P/E multiples appear discounted relative to robust profit expansion, suggesting current market negativity is not fundamentally justified. Getty Images Looking Past The Summer Consolidation In my July 2026 macro analysis , I wrote that the S&P 500 index ( SPY ) ( SP500 ) was going through a consolidation between 7,200 and 7,600 points, and since then, it hasn’t This article was written by Nova Capital 1.18K Followers Follow A seasoned consulting specialist at a leading Central Asian bank. The author behind Novo Capital brings half a decade of experience delivering strategic insight and analysis for the bank's clientele within the private banking branch. Launching the career back in 2020 after graduating from a top CA university, the author developed a resilient methodology forged amidst global market volatility, focusing on corporate valuation, due diligence for investment opportunities, and crafting spot-on forecasts that guide long-term investment strategy. The goal of contributing to Seeking Alpha seems to be quite simple: ideas are worth discussing, and one can gain "alpha" only through gaining out-of-consensus information from opinions few professionals have nowadays. That's exactly the reason Novo Capital was created. Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPY, QQQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.