Earnings surge could spark the next leg up in the 2026 stock rally

Yahoo Finance notes that the broad market’s forward P/E remains below its 2026 starting point because earnings have surged, even as stock prices stay high. With second-quarter earnings growth around 23.3%—above long-term averages and ten of eleven sectors expected to post YoY gains—a sustained earnings boom could lift estimates and support higher prices, potentially delivering a Q3 where rising earnings and stock prices reinforce each other.