
S&P 500 earnings are up a stunning 29.3% versus a year ago, with eight of 11 S&P sectors sporting double-digit earnings increases.
S&P 500 is in the midst of the strongest earnings environment in seven years, and the S&P 500’s earnings are forecasted to rise 21.5% in 2026.
Since it will take up to 3 years to fulfill current data center order backlogs, I anticipate this sales and earnings momentum to persist well towards 2029.
There is undoubtedly a new world order emerging now, with the U.S. dominating world energy markets. Meanwhile, China’s military influence is waning.
Economist Ed Yardeni headlined this current AI-fueled rally as a surge “To Infinity and Beyond!” I agree.
Overall, investors are increasingly confident that the U.S. is the safest place in the world to invest.
Fed Chair Jerome Powell’s second four-year term ends May 15th, and Senate hearings for incoming Fed Chair Kevin Warsh are nearing a positive conclusion.
I expect second-quarter GDP growth to surge and 5% GDP growth to arrive no later than the third quarter.
It is fair to say that the excitement about the upcoming quarterly announcement season is building, so we have a lot to look forward to in the upcoming weeks.