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As earnings season kicks off this week, investors are closely watching Wall Street's next big test. Piper Sandler co-chief investment strategist Michael Kantrowitz joins Catalysts to share his market outlook (^DJI, ^IXIC, ^GSPC).

Kantrowitz emphasizes that the key question is "when will breadth improve in the equity market." He highlights two significant periods of breadth surge: late 2022 "when inflation started to come down" and the end of 2023 "as the Fed [Federal Resereve] pivoted." However, he cautions that for investors to maintain a bullish stance on equities, "you have to think breadth's going to continue to improve," noting that earnings will be the primary driver of this improvement.

"Each cycle's a little different, with this cycle there's still a pretty big focus on inflation coming down and the Fed cutting rates," Kantrowitz tells Yahoo Finance.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This article was written by Angel Smith