The S&P 500 index is expected to see a +7.7% increase in Q4 2025 earnings compared to the previous year, with revenues also rising by +7.9%. This marks the 10th consecutive quarter of positive earnings growth, driven primarily by the Tech sector.

Investors are optimistic about the earnings outlook, especially in the Tech sector. Other sectors are also showing signs of becoming significant contributors to growth. Positive earnings revisions are being observed, and the upcoming earnings season will be crucial in providing visibility on future trends.

Finance sector earnings were positive in Q3, with banks like JPMorgan (JPM) and Citigroup (C) set to kick-start the Q4 earnings season. Their results will set the tone for the rest of the reporting cycle, with management guidance playing a key role in shaping market sentiment.

The AI sector is poised for significant growth, creating wealth for investors. While the first wave of AI stocks may see a slowdown, new companies are expected to lead the next wave of AI innovation. Zacks’ AI Boom 2.0 report highlights 4 under-the-radar companies set to shine in this new phase of AI development.

Read more at Nasdaq: Can Strong Earnings Justify High Stock Valuations?