S&P 500 profit expectations rise against the trend, Wall Street bets on US stocks to withstand the impact of geopolitical risks.

Despite the turmoil in the Middle East war this month, sell-side strategists have been continuously raising profit expectations, disregarding concerns about soaring oil prices and potential setbacks in consumer demand. Data compiled by Morgan Stanley shows that earnings expectations for S&P 500 index components in the next 12 months are projected to increase by 20%. Barclays strategists raised their year-end target and profit expectations for the S&P 500 index on Tuesday, citing strong performance in the US economy and technology blue-chip stocks.