Earnings growth finally showing up outside tech

Full Article

The latest earnings season reveals a significant recovery for companies outside the tech sector, marking a shift from the dominance of major tech firms. For the first time since late 2022, broader profit growth is expected among S&P 500 companies, excluding the top seven tech giants. This trend indicates a more balanced market, providing investors with diverse opportunities beyond just a few stocks.

Despite the positive earnings outlook, major retailers like Home Depot, Walmart, and Target have yet to report, leaving uncertainty about consumer spending. The performance of these companies will be crucial as traders remain cautious about potential economic slowdowns. Additionally, Nvidia's upcoming report is highly anticipated, given its pivotal role in the AI sector.

• AI investment returns are uncertain, impacting major tech companies' outlooks.

• Nvidia's report is crucial for understanding AI spending trends.

Key AI Terms Mentioned in this Article

Artificial Intelligence (AI)

The article discusses how AI investments are influencing company performance and market dynamics.

AI Monetization

The focus on AI monetization is highlighted as a key concern for companies during the earnings season.

AI Spending

The article notes that companies may cut back on AI spending if economic conditions worsen.

Companies Mentioned in this Article

Nvidia

Nvidia's performance is critical for investors interested in AI, as it is a major beneficiary of AI spending.

Meta

Meta's recent revenue growth attributed to AI indicates its importance in the evolving tech landscape.

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