Rathbones flags higher equity volatility risk as earnings growth concentrates in AI, energy sectors

By Public Technologies
  • Rathbones flagged strong corporate profits as a key support for equities entering the third-quarter reporting season.
  • S&P 500 third-quarter earnings growth forecast at 27% year-on-year, highest since 2021; growth concentrated in AI-linked stocks.
  • Hyperscaler AI infrastructure capex expected to more than double year-on-year; top 10 stocks seen driving over two-thirds of EPS growth.
  • Stoxx 600 third-quarter earnings growth forecast at 25%, led by energy; median growth projected at 10%.
  • Options pricing implies average 5.4% post-results moves for S&P 500 stocks, signaling higher volatility through earnings season.


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