S&P 500 Sector Recommendation Shuffle

The big things you need to know:

• First, we are making several changes to our S&P 500 sector views with upgrades to Tech to overweight and Consumer Discretionary to market weight, alongside downgrades of Communication Services to market weight and Utilities to underweight.
• Second, the expected growth rate for 2Q26 S&P 500 EPS has continued to drift up ahead of reporting season, but trends in beat rates and EPS revisions have been mixed.
• Third, on our broader outlook we’re on guard for a shift back into US and mega cap Growth leadership.