Reported about 7 hours ago
U.S. stocks are reaching record highs driven by optimistic earnings forecasts as the third quarter approaches, with over 22% of S&P 500 companies anticipating better-than-expected results. This positive outlook contrasts with concerns regarding tariffs imposed by former President Trump, as many corporations appear to be managing tariff costs effectively. Analysts project a 6.9% earnings growth for S&P 500 firms, bolstered by lower interest rates likely to enhance corporate profits. Historical data suggests that equity prices often rise significantly during the second year of interest rate cuts, providing further support for optimistic market sentiment.
Source: YAHOO