The recent US stock market rally is primarily driven by robust corporate earnings rather than market valuations. However, the AI-led momentum in the S&P 500 is facing headwinds from tightening liquidity and a strong jobs report that reinforced 'higher for longer' interest rate expectations. Furthermore, Wall Street consensus indicates decelerating earnings growth for major indices, while tech giants like Google and Meta are shifting capital allocation through massive equity and debt issuances.
