US Stock Market Sees Strong Earnings Growth in Q2

The US stock market is experiencing strong earnings growth, with 77.2% of S&P 500 companies reporting Q2 results showing a 41.7% increase in total earnings and 14.8% higher revenues compared to the same period last year.

According to Zacks Director of Research Sheraz Mian, 'For the 386 S&P 500 companies that have reported Q2 results, or 77.2% of the index’s total membership, total earnings are up +41.7% from the same period last year on +14.8% higher revenues.'

The Tech sector has been a key driver of this growth, with expected earnings growth of +93.6%, led by companies such as Nvidia NVDA, Micron MU, and Alphabet GOOGL.

Excluding these three companies, Q2 earnings growth for the rest of the S&P 500 index would be +17.7% compared to +42.2% otherwise.