Upturn in Profits About to Boost Hiring

A reacceleration in corporate profits is set to trigger a hiring surge this summer, which will likely push inflation toward 3% by 2027. While equity markets appear to be topping, the real economy is expected to remain resilient as capital reallocates from financial to real assets.

Key Takeaways

• 1.Profit momentum for nonfinancial firms has reaccelerated, signaling an upcoming increase in hiring for June or July 2026.
• 2.Inflation is expected to rise above 3% in 2027 as the labor market tightens, with the Fed likely to lag behind the curve.
• 3.The equity market shows signs of topping due to momentum divergences, though this is seen as a reallocation to real assets rather than a crash.

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