Traders are keeping a close eye on tariffs and artificial intelligence (AI) spending as the market gears up for the upcoming earnings season. The S&P 500 has climbed 11% year-to-date, with much of the momentum coming from a surge in AI-driven investments. This enthusiasm for AI has sparked rallies not just in the US, but in global stock markets as well.
AI and Trade Tensions Drive Market Sentiment
Earnings estimates for major US companies are on the rise. According to analysts from Bloomberg Intelligence, profits are expected to grow by 7.4% for US stocks in the third quarter. This uptick reflects growing optimism, even as trade tensions escalate and concerns about a potential tech bubble linger.
Corporate Earnings Will Be Key
With the S&P 500 up nearly 32% since its April low, investors are watching closely to see if corporate earnings can support such rapid gains. Strong results will be crucial for sustaining the market rally amid ongoing geopolitical and economic uncertainties.
Sources:
finance.yahoo.com
