The stock market is rallying on strong corporate earnings, with 82% of firms beating estimates for the second quarter. Tech giants like AMD and Super Micro Computer reported mixed results, impacted by US export restrictions and President Trump’s tariffs. McDonald’s exceeded earnings expectations but voiced concerns about low-income consumer spending. Palantir smashed earnings estimates, reflecting the AI trade’s continued strength.

Microsoft and Meta also beat earnings expectations, joining the $4 trillion club. Mega-cap tech stocks are dominating the market, with tech being the best-performing sector in July. Large-cap stocks are outperforming small-cap ones, widening the gap between them. Analysts continue to favor US large-cap tech over small caps, citing market trends and performance data.

Read more at Yahoo Finance: These are the top takeaways for investors from the latest high-profile earnings reports