Citi Index Shows Longest Run of US Earnings Upgrades Since 2021

The persistence of earnings upgrades, now the longest in over two years, suggests that corporate fundamentals are outpacing macro headwinds like inflation and elevated oil prices. This divergence matters because it implies the market's positive tone is increasingly driven by bottom-up profit resilience rather than policy relief. The key tension to watch is whether this upgrade cycle can withstand further Fed tightening or a sustained energy shock, as those factors could quickly reverse the sentiment boost.