Q2 Earnings Season Preview: What to Expect

The article previews Q2 S&P 500 earnings and suggests the market backdrop remains constructive. Aggregate Q2 earnings for the index are expected to rise 21.8% year over year on 10.9% revenue growth, with 11 of 16 sectors projected to post earnings gains. Estimate revisions have improved since the quarter began, indicating positive momentum in analyst expectations. Technology remains the key growth engine, with expected earnings growth of 43.6% and a large influence on the overall index result; excluding tech, S&P 500 earnings growth would drop to 11.4%. Energy and basic materials also show strong upward revisions, helped by oil-related geopolitical effects, while transportation, autos, medical, and consumer discretionary sectors face pressure. Overall, the piece is bullish for broad U.S. equities, especially tech, energy, and materials.