Earnings, Not Headlines, are Driving This Market

Get your free copy of our Q2 2026 Market Commentary for a closer look at what’s really driving this year’s earnings-fueled rally. It’s An Earnings Market. Here’s the Proof. Through the first half of 2026, investors faced no shortage of reasons for caution—renewed conflict in the Middle East, oil prices spiking, Treasury yields climbing past 4%, and a Federal Reserve under new leadership. Stocks rallied anyway. Our Q3 2026 Market Commentary1 offers our views on why: Corporate earnings have continued to surprise to the upside, often by a lot. First-quarter S&P 500 earnings grew nearly 30% year-over-year, and profit margins reached their highest level in at least a decade. We also look at how a stabilizing labor market, moderating inflation, and a new Fed chairman are shaping the outlook for the second half of the year. Topics in this report include: Why earnings, not speculation, have driven this year’s market gains What record profit margins reveal about corporate resilience How AI infrastructure spending is reshaping free cash flow at mega-cap tech Why a stabilizing labor market and moderating inflation support the outlook What history says about markets in a midterm election year If you have $500,000 or more to invest, request your free copy today. Talk to a Zacks Wealth Advisor today. 1 Zacks Investment Management reserves the right to amend the terms or rescind the free Q3 2026 Market Commentary offer at any time and for any reason at its discretion. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. Zacks Investment Management, Inc. is a wholly-owned subsidiary of Zacks Investment Research. Zacks Investment Management is an independent Registered Investment Advisory firm and acts as an investment manager for individuals and institutions. 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