Earnings Drive S&P 500 to 7,524 as Citi Affirms Large-Cap Bull Case

The S&P 500 holds near 7,524 on May 27-28, supported by robust corporate profits rather than valuation expansion. The five-day arc opened with Danske Bank warning of cyclical leadership and rising stagflation risks on May 22, then Goldman Sachs highlighted resilient earnings, $600 billion equity supply and negative equity-rates correlation as 10-year yields reached 4.6 percent. HSBC, RBC and Yardeni added inflation sensitivity and short-term pullback risks alongside an 8,250 target, while the latest Goldman notes emphasize narrower, earnings-dependent gains and historically muted pre-midterm returns, reinforced by Citi’s May 28 outlook citing 27 percent year-over-year EPS growth and AI momentum.