Earnings Test: $10 Trillion Stock Market Rally and Profit Outlook for Canadian Investors

The $10 trillion global stock market rally this year will face a crucial test as hundreds of companies report earnings in the coming weeks. S&P 500 firms are expected to see a 9% drop in profits in the second quarter, making it the worst season since 2020. Investors will be watching the earnings implications of artificial intelligence (AI) on technology companies, the impact of cooling inflation on businesses, the tone around consumer spending, European profits, and the performance of China's stock market.