JPMorgan Predicts US Firms to Outpace Europe in Profit Growth

JPMorgan Chase & Co. strategists have forecasted that US firms will likely outperform their European counterparts in profit growth during the current earning periods. According to Mislav Matejka, a leading strategist at JPMorgan, this disparity may be due to lower expectations set for S&P 500 companies. US analysts significantly reduced their forecasts ahead of the earnings season, despite a resilient economy. In contrast, expectations for European cyclical and defensive shares were raised to more ambitious levels, potentially making it difficult for companies to meet these targets. This situation increases the risk for European firms compared to the momentum of activity in the US. Additionally, US stocks have extended their outperformance against international peers this year, driven by tech shares.