STOCKS | S&P 500 Poised for Strongest Earnings Growth in Five Years

On May 22, Jin10 reported that the S&P 500 index is expected to achieve its strongest earnings growth in five years, as growth momentum driven by artificial intelligence expands to most U.S. companies. According to institutional data, approximately 93% of companies within the benchmark index have released their financial reports, with 83% surpassing analyst expectations. This is the highest percentage since 2021. The data indicates growth across various sectors, except for healthcare. Overall, the robust performance of the energy and technology sectors has offset weakened consumer confidence due to rising oil prices from the Iran war. Additionally, the communication services and consumer discretionary sectors have shown remarkable performance, with materials and industrial sectors also exceeding expectations. Analysts Welnhofer and Cain suggest that if cyclical and non-AI sectors begin to contribute alongside Nvidia and the AI sector, 2026 may not exhibit end-of-cycle slowdown but rather resemble the post-pandemic profit surge of 2021.