S&P 500 Surges: 80% of Value Stocks Beat Expectations

Global stocks are poised to end the week on a positive note, with risks from the Middle East conflict abating and strong earnings momentum. Over 80% of S&P 500 value stocks have delivered positive surprises, indicating a favorable outlook for the market.
Traders have adjusted their expectations for a rate hike to November, leading to increased optimism in other assets and allowing stocks to gain momentum. Bonds have rallied from cheap levels as the perceived risk of upward rate movements diminishes.
Economists do not anticipate a significant increase in nonfarm payrolls, with a narrowing consensus suggesting reduced volatility in economic forecasts. Despite recent yield declines, US Treasuries remain undervalued, particularly in the longer end, while tech stocks, including chipmakers AMD and Intel, have faced selling pressure despite enthusiasm for AI.