Analysts forecast 24.7% year-over-year earnings growth for the S&P 500, marking a seventh straight quarter of double-digit gains.
Alphabet and Tesla kick off a pivotal week of earnings for the so-called ‘Magnificent Seven’ tech giants, as investors weigh heavy AI-related capital expenditures against growth prospects. Intel and IBM will also report, offering insights into artificial intelligence demand and Q2 performance after IBM’s stock plunged on pre-announced results.
The S&P 500 is on track for 24.7% year-over-year earnings growth in Q2, exceeding the five-year average of 16.4% and the 10-year average of 10.3%. This would extend a streak of double-digit growth to seven consecutive quarters, with two straight quarters above 20%.
Bank earnings last week set a strong tone, with JPMorgan, Morgan Stanley, and Citigroup posting robust profits, though Netflix’s forecast disappointed markets. Other key reports this week include General Motors, AT&T, and American Express.