Second Quarter Earnings Show Breadth

Nasdaq 548 Followers Follow Summary AI Trade Rotation: From hyperscalers to chipmakers in the "picks and shovels" trade. SOX Fundamentals-Driven Rally: ~60% YTD price gain matched by ~60% earnings growth; 75% more is projected next year. Nasdaq-100 Earnings Breadth at 4½-Year High: Over half of constituents with 20%+ growth; Q2 earnings near 80% p.a. - strongest since 2010. Large-Cap Valuations Compressing: Forward earnings are outpacing price returns; P/E multiples are falling despite record highs. Broader Than AI: Mid/small caps pricing in recovery on rate cuts, cooling wages, and tax tailwinds - strength extends well beyond chips. mohd izzuan/iStock via Getty Images By Phil Mackintosh, Nasdaq Chief Economist and Michael Normyle, U.S. Economist and Senior Director at Nasdaq For markets, the artificial intelligence (AI) trade has been the dominant theme for the last couple of years. But it has shifted This article was written by Nasdaq 548 Followers Follow Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence.