The Q3 earnings season is off to a strong start, with big banks surpassing estimates and providing positive outlooks for the future. Key sectors like Tech, Finance, and Energy have seen positive estimate revisions. 49 S&P 500 members have reported +16.5% earnings growth and +8.2% higher revenues, with 83.7% beating EPS estimates.

The next phase of the AI explosion is expected to generate significant wealth for investors. Zacks’ AI Boom 2.0 report highlights 4 under-the-radar companies set to shine in the next wave of AI development. Investors who got in early on companies like Nvidia have seen substantial gains, but the first wave of AI stocks may soon plateau.

To sustain the positive momentum in the market, we need strong guidance and management commentary during the Q3 earnings season. An improving earnings outlook will help validate the market’s gains this year. The current earnings season has had a reassuring start, with companies exceeding revenue expectations, showing early momentum on the revenue side.

Read more at Nasdaq: Will the Q3 Earnings Season Prove Positive for the Market?