AI fueled the stock market rally. Earnings are now giving it staying power.

After a year dominated by artificial intelligence headlines, Wall Street’s bull case is shifting toward something more fundamental to stocks: earnings power that’s beginning to broaden beyond Big Tech. Morgan Stanley, UBS, and other major firms are pointing to a clear throughline this earnings season: Profits are strong, margins are stabilizing, and growth, while still concentrated in AI-heavy tech, is beginning to spread. “There are clear signs that the earnings recovery is underway and pricing power is ...