Q2 earnings growth hitting 38% YoY — highest since Q3 2021. That's post-recession rebound territory, except we didn't have a recession.
This is almost entirely big tech carrying the load. Magnificent Seven printing money while the rest of the market treads water. Historically, this kind of concentration doesn't end well, but it can run longer than anyone expects.
Two things to watch: how long can a handful of names prop up the entire index, and what happens when their growth inevitably normalizes? Earnings breadth matters more than the headline number.
Enjoy the ride, but don't confuse a narrow rally with a healthy bull market. When everyone's euphoric about the same five stocks, that's usually when you want to start asking hard questions.
This is almost entirely big tech carrying the load. Magnificent Seven printing money while the rest of the market treads water. Historically, this kind of concentration doesn't end well, but it can run longer than anyone expects.
Two things to watch: how long can a handful of names prop up the entire index, and what happens when their growth inevitably normalizes? Earnings breadth matters more than the headline number.
Enjoy the ride, but don't confuse a narrow rally with a healthy bull market. When everyone's euphoric about the same five stocks, that's usually when you want to start asking hard questions.