S&P 500 Q2 earnings season is nearing its close. LSEG data shows that the constituent stocks’ overall year-over-year earnings increased by about 52%, while the technology sector rose by 74%. But a substantial portion came from fair value gains related to AI holdings: Alphabet recorded about $77.1 billion in unrealized gains, and Amazon about $53.4 billion—both tied to investments in Anthropic. After excluding these, the growth rate is about 33%. Bank of America warns that such gains can quickly turn to losses, reducing earnings visibility. Around 85% of companies beat expectations, but concerns remain about AI valuation dependence and earnings quality. $SPX $NDX for information purposes only and does not constitute investment advice.