Spending Surge Might Be Just What Stocks Need to Hit New Heights

  • Companies in U.S., Europe planning to ramp up capex after lull
  • Market rewarding firms that continue to invest: State Street
Photographer: Krisztian Bocsi/Bloomberg
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Plans for the biggest corporate spending boom in more than a decade could be the next driver for stock markets trading at record highs.

Last year’s prudence among companies is giving way to jubilant investment across a swath of industries, driven by economic reopenings, low interest rates and government support. Such a signal of confidence in the future is making the likes of JPMorgan Chase & Co., State Street Global Markets and Invesco Ltd. optimistic that equity investors can reap even greater rewards than they’re currently enjoying.