S&P 500 earnings surged 31% year over year in Q2, far exceeding Wall Street’s 23% expectation, marking the strongest growth rate since 1992 outside the recession-recovery period 📈. The core reasons for this round of results beating expectations are threefold: first, AI has truly shifted from a “cost center” to a “profit center,” boosting the S&P 500’s net profit margin by roughly 150 basis points, pushing the overall net margin close to its historical peak near 16%; second, despite multiple headwinds, the U.S. economy has shown resilience beyond expectations, with consumer demand holding steady; third, corporate tax relief policies have taken effect—combined with extreme cost-cutting efficiency in a high interest rate environment—leading to a real expansion in profit margins.
On the tape, Alphabet (GOOGL) and Amazon (AMZN) are the biggest drivers of record-high profit margins; Microsoft (MSFT)’s cloud business also came in above expectations. Nvidia (NVDA), whose earnings report is coming soon, is expected to add fuel to the AI narrative. The broad-market index SPY also held above 7757 points at the close, hitting a new high, and Wall Street’s year-end target for the S&P 500 is now clustering around the 8000 level 📈.
Short term 📉, long term 📈: Valuations and earnings over the past few months have already been priced in substantially. In summer, the market faces volatility pressure from deleveraging and persistently high U.S. Treasury yields, so pullback risks cannot be ignored. However, the conversion of AI capital expenditures into revenue is only at halftime; corporate earnings expectations are being continuously raised, and the long-term bullish case has not been broken. #标普500财报超预期
$GOOGL
$AMZN
$NVDA
On the tape, Alphabet (GOOGL) and Amazon (AMZN) are the biggest drivers of record-high profit margins; Microsoft (MSFT)’s cloud business also came in above expectations. Nvidia (NVDA), whose earnings report is coming soon, is expected to add fuel to the AI narrative. The broad-market index SPY also held above 7757 points at the close, hitting a new high, and Wall Street’s year-end target for the S&P 500 is now clustering around the 8000 level 📈.
Short term 📉, long term 📈: Valuations and earnings over the past few months have already been priced in substantially. In summer, the market faces volatility pressure from deleveraging and persistently high U.S. Treasury yields, so pullback risks cannot be ignored. However, the conversion of AI capital expenditures into revenue is only at halftime; corporate earnings expectations are being continuously raised, and the long-term bullish case has not been broken. #标普500财报超预期
$GOOGL
$AMZN
$NVDA