Invesco's Kristina Hooper expects a majority of multinational companies to turn more optimistic this earnings season.
The firm's chief global market strategist cites the easing of the U.S.-China trade war threat as a major catalyst.
Hooper believes a trade deal will bring back capital expenditure spending plans as companies revert to a calmer global environment.
"What's most important to me is to hear about guidance for the future. What is the outlook for the rest of this year, and in particular, what I want to hear most about is business confidence," she told CNBC's "Trading Nation" on Tuesday. "It'll be important to hear from companies confirming that assumption — saying that they do feel better about the outlook given that signing of the 'phase one' trade deal."
The U.S. and China are expected to sign it on Wednesday. According to Hooper, it's a key development that will boost corporate profits even though there's still a lot of work left to do.
"It is not actually a momentous deal. Many of the most important issues haven't been tackled in phase one," she said. "But it is extremely important from a psychological perspective because it does remove a very significant amount of uncertainty and suggests that we won't see any further escalation in the trade war."
Despite the progress, Hooper predicts most companies will only slightly beat or meet estimates during fourth-quarter earnings season, which just started on Tuesday.
"I wouldn't expect blockbuster results," added Hooper.
But with U.S.-China tensions subsiding and an easy Federal Reserve policy, she feels it's enough to keep stocks on firm ground.
Hooper's S&P 500 year-end forecast calls for high single percentage growth. So far this year, the index is up almost 2%.