Why Wall Street Is Feeling So Bullish
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- S&P 500 futures are approaching another record on Tuesday, climbing despite a 'precarious U.S.-Iran cease-fire' that is whipsawing oil markets, growing odds of a Fed interest-rate increase, and President Trump's renewed trade war.
- Eighty-six percent of S&P 500 companies that have reported this earnings season posted EPS results that beat analyst forecasts as of Friday's close, according to FactSet.
- Palantir, Snap, and On Semiconductor shares are all soaring in premarket trading after Monday results, with Palantir CEO Alex Karp citing 'otherworldly' sales growth that prompted the company to lift its full-year outlook.
- Robust consumer and business spending and strong pricing power have padded corporate bottom lines, helping firms absorb macroeconomic headwinds.
- SpaceX is set to deliver its first-ever quarterly results after Tuesday's closing bell.
- Jeff Buchbinder, chief equity strategist at LPL Financial, told investors Monday to expect earnings to be the primary driver of stock gains this year.
Why it matters: An 86% earnings beat rate is extraordinary and, combined with Palantir's lifted full-year outlook, shows companies have enough pricing power to absorb tariff pressure and rate-hike risk — investors who held long positions through the Iran and trade-war noise are being rewarded as fundamentals override the macro anxiety that dominated recent headlines.
