Can blockbuster earnings keep the bull market running despite economic warning signs? After a volatile stretch, U.S. stocks are again capturing the glass-half-full narrative. The Dow rose 0.17% and the S&P 500 climbed nearly 0.5% Wednesday, even as tariff chatter and tepid service sector data loomed. Investors cheered:
- McDonald’s—+3% as it reversed a U.S. sales slump
- Disney—beat on earnings but shares slipped (–2%) as TV ad woes offset streaming gains and a splashy NFL deal
- Palantir (+7%) hit a $1B quarterly revenue milestone, fueling a market cap surge
- Conversely, Snap (–18%), Super Micro (–17%), and AMD (–6%) all missed on earnings, with AI chip export bans and ad market softness biting
Market strategists are still upbeat: S&P 500 Q2 earnings growth is tracking at +10.3%—double the original 5% forecast. But how long can tech and AI optimism paper over cracks in the real economy?
