S&P 500 Index Inches Closer to Record High Amid Strong Earnings Expectations

The S&P 500 Index is hovering near its all-time high of 7,817 points. Analysts are anticipating a strong earnings season, with FactSet data showing an average estimate of 29.2% earnings growth rate for the third quarter.

This would mark the third straight quarter of earnings growth above 25%, led by companies in energy, technology, communication services, and materials. Technology firms are reporting strong growth due to the ongoing artificial intelligence boom, with Micron Technology's revenue jumping to a record $54 billion in the last quarter.

Nvidia has also reported impressive results, with its revenue reaching $104 billion in Q2, and guiding to a 77% annual growth rate next year. The company has also unveiled an additional $150 billion share buyback plan.