Corporate earnings reports for the second quarter have exceeded expectations, with year-on-year growth estimated at 9.8%. This has boosted investor confidence, especially in companies linked to the artificial intelligence trade. Strong results from Microsoft and Meta Platforms have reassured investors, dispelling earlier concerns about competition from startups like DeepSeek.

Investors are eagerly awaiting reports from Dow Jones Industrial Average companies like Disney and McDonald’s, which could drive the index to new highs. Despite some short-term market turbulence due to new U.S. tariffs and earnings disappointments, analysts believe any pullback is a buying opportunity, especially in tech and AI stocks.

The dominance of AI and tech giants like Microsoft, Alphabet, and Amazon in the market has lifted investor sentiment. Even though concerns remain in other parts of the economy, the strong performance of these companies has overshadowed them, leading to a positive outlook for the market as a whole.

Read more at Yahoo Finance: AI gains and strong earnings support Wall Street as tariff woes linger