Alphabet and Amazon Fuel Fastest Corporate Earnings Growth Since 2021

Corporate earnings growth accelerated to its fastest pace since mid-2021 in Q2, driven primarily by Alphabet and Amazon's strong results. The two tech giants contributed a significant 18.4 percentage points to this growth.

Alphabet posted an impressive 216% earnings per share beat, although adjusting for unrealized gains shows the actual performance was closer to estimates. Even excluding Alphabet and Amazon from the equation, corporate earnings growth and profit margins reached record highs since 2009.

This strong earnings momentum has led to a bullish outlook on the broader market, with some analysts expecting rotation into momentum-driven sectors like memory chips.