Wells Fargo spotlights three reasons that the bull market still has momentum

Wells Fargo's equity research team maintains a positive outlook for equities, despite a recent sell signal from broader models. They cite strong corporate earnings, accelerating AI adoption, and improving liquidity as key supportive factors. S&P 500 companies exceeded earnings expectations by 6% in the latest reporting season, with a year-over-year EPS growth of 18%. The AI sector remains robust, particularly among semiconductor and cloud providers. Additionally, a "mini liquidity upcycle" has been identified, historically leading to average S&P 500 gains of 15% in the following six months.