Global X Midyear Investment Outlook: U.S. and Select International Markets Inspire Optimism

Second half could be shaped by expanding price-to-earnings multiples in U.S. and continued momentum across emerging markets

NEW YORK--(BUSINESS WIRE)--With equity markets reaching new highs and credit spreads tightening, Global X Management Company LLC (“Global X”) views the U.S. economy with broad optimism. At the same time, Global X sees both value and momentum across select emerging markets through the remainder of 2026.

“Earnings per share for S&P 500 companies have been revised upward by 8%, accounting for the bulk of year-to-date returns. Profit margins have also been revised higher – they’re on pace to expand for the fourth straight year, helped by first-quarter earnings growth of nearly 30% year-over-year,” said Scott Helfstein, Head of Investment Strategy at Global X.^[i]

“The positive outlook in the U.S. is being propelled by AI-driven automation as investments in processing capacity are expected to fuel greater efficiency. This margin expansion is precisely where we expect AI’s benefits to show. Our expectations call for improved profit margins in small- and mid-cap companies after years of stagnant margins,” he added.

The AI build-out is driving demand for AI solutions in multiple industries. Existing data center and digital infrastructure companies, which already possess stocks of components, are among the sectors that could benefit from sustained demand. Hardware, such as memory and storage, is another. Raw material inputs such as copper, lithium, and rare earths could also see sustained demand.

Finally, one less obvious beneficiary of this unique demand cycle is infrastructure development. Historically, it has been cyclical due to government spending programs. But now the private sector is financing digital infrastructure and data center investments.

Emerging Markets

In Global X’s view, emerging markets (EMs) could also offer notable exposure to the AI ecosystem. Semiconductors, power, and electrification represent key parts of various emerging market economies.

“We believe commodities are a core part of the EM story. They also share many of the same macro-economic drivers as EM economies, including the direction of the U.S. dollar and the strength of global economic activity,” said Malcolm Dorson, Head of Active Investment at Global X. “We believe the combination of years of EM under-investment and accelerating demand from these long-term growth themes could set the stage for another strong cycle.”

On the sovereign front, Dorson believes there’s potential for valuation improvement in Brazil, Colombia, and Argentina.

“And Greece has emerged as a strong and prudently managed economy, taking its place among others in Western Europe. It’s important to note that Greece now carries investment grade ratings from all three major credit rating agencies,” he added.^[ii]

In its newly published midyear outlooks, Global X addresses the macroeconomic environment as well as the U.S. economy and current investing trends in Latin America, India, China, and beyond. To read its midyear outlooks, click here.

Important Information

Investing involves risk, including the possible loss of principal.

Past performance does not guarantee future results.

This document reflects Global X’s opinion as of the publication date. It contains an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It does not represent investment advice or recommendations.

This information is not intended to be individual or personalized investment advice and should not be used for trading purposes. Please consult a financial advisor for more information regarding your situation.

About Global X

Global X has been empowering investors with unexplored and intelligent solutions since it was founded in 2008. It has over $94 billion in assets under management.^[iii]

Global X is a member of Mirae Asset Financial Group (Mirae Asset), a global leader in financial services, with $803 billion in assets under management worldwide.^[iv] Mirae Asset has an extensive global ETF platform ranging across the U.S., Australia, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam.

^[i] Source: Global X analysis with information derived from Bloomberg data. Retrieved on June 12, 2026.

^[ii] Source: S&P Global Ratings upgraded Greece’s long- and short-term local and foreign currency sovereign credit ratings to investment-grade status on October 20, 2023. Fitch Ratings upgraded Greece's long-term foreign-currency issuer default rating to investment-grade status on December 1, 2023. Moody's restored Greece's sovereign credit rating to investment grade on March 14, 2025.

^[iii] Source: Global X ETFs as of June 30, 2026.

^[iv] Source: Mirae Asset as of December 31, 2025.