The S&P 500 hit five record highs last week, rising 28% from April 8 lows. This V-shaped recovery is the second-fastest in 75 years. Earnings revisions are also soaring, with Q2 earnings expected to grow 6.4%, up from 5%. Analysts now predict a 13.9% earnings growth in 2026.

Morgan Stanley’s CIO says earnings revisions are leading actual estimates, justifying the market rally. He compares the current rebound to the pandemic-era recovery, emphasizing bullishness for the next 6-12 months. This strong V-shaped recovery is unprecedented, signaling optimism in the market’s future.

Read more at Yahoo Finance: The V-shaped recovery in stocks is a V-shaped recovery in earnings: Chart of the Week