Bulls or Bots? Dissecting the AI everything U.S. equity market | 6 Aug 2026 | On Investors’ Minds - APAC Edition | J.P. Morgan Asset Management Hong Kong

1. Executive Briefing (TL;DR)

• Top Key Takeaways:

  • Exceptional Q2 Earnings Beat vs. Unfavorable Market Reaction: 86% of S&P 500 companies reporting have beaten earnings expectations—the broadest beat rate in five years—driving YoY S&P EPS growth to 45% (33% excluding hyperscaler investment gains), far exceeding the 7% long-term historical baseline [01:40].
  • Hyperscaler CapEx Transition from Cash-Flow to Debt-Funded: Hyperscaler capital expenditure expectations for 2026 are up >100% and 2027 up 150%, targeting $1 Trillion by 2028 []. However, funding has shifted as free cash flows turn negative, driving US IG tech debt issuance to a record 30% of total investment-grade issuance [].