AI investments boost second quarter SP 500 earnings
SP 500 companies posted strong second-quarter earnings growth driven largely by profits in the technology sector and AI investments. Alphabet and Amazon recorded substantial mark-to-market gains from stakes in artificial intelligence firms. However, investors remain cautious regarding the impact of market volatility on these earnings.
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Insights:
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S&P 500 companies are on track for a 52% surge in aggregate second-quarter earnings from the year before, driven largely by profits in AI-related technology stocks. The jump follows large mark-to-market boosts recorded by companies holding stakes in artificial intelligence startups. Excluding those valuation gains, second-quarter profit growth would stand at 33%, according to LSEG data.
