BIG NUMBER | 0% | It's All About The Earnings

Core Insights - The recent stock market highs are primarily supported by strong corporate earnings growth rather than investor exuberance [2][3] - Equity market returns driven by robust earnings are generally more resilient compared to those influenced by fluctuating investor sentiment [3] - Current stock market valuations are similar to those at the beginning of 2025, with earnings growth being the main driver [5][6] Earnings Performance - The Nasdaq 100 Index has increased by 16% this year, supported by a 14% rise in expected earnings [8] - The "Magnificent Seven" tech stocks have also risen by 16%, with expected earnings growth of 17% [8] - The S&P 500 large-cap stocks are up 13%, with expected earnings growth of 10% [8] - Even the S&P 600 small-cap stocks, which have lagged, show expected earnings growth of 5% [8] Valuation Trends - Valuations across major indices have seen minimal changes this year, with the Nasdaq 100's valuations rising by only 2% and the S&P 500's by 3% [8] - The "Mag 7" tech stocks and small-cap S&P 600 have experienced a shrink in valuations despite their price increases [8]