S&P 500 earnings growth broadens as corporate profits stay strong

U.S. equities are positioned to continue benefiting from robust and broadening corporate earnings growth, according to Humilis Investment Strategies. The firm emphasized that fundamental corporate performance, rather than valuation multiple expansion, continues to serve as the primary catalyst behind recent equity market strength. With approximately 97% of S&P 500 companies having reported quarterly results, earnings expansion has displayed notable breadth across industries, with 10 out of 11 sectors delivering positive numbers. Crucially, the solid earnings performance remained resilient even when excluding major tech heavyweights such as Amazon and Alphabet. Consequently, Humilis views potential market pullbacks and periodic volatility as constructive buying opportunities, projecting the broader benchmark to finish higher than current levels.