Earnings Expectations

• Expected S&P 500 earnings growth for Q1 has doubled to 28% since early April, fueled by upward revisions across sectors. • Mega-cap tech stocks, dubbed the 'Magnificent Seven,' account for 55% of quarterly and 37% of annual growth, comprising a third of index market cap. • This momentum propelled the S&P 500 to a 10% gain in April, its best month since November 2020, amid AI-driven revenues.

• ExxonMobil and Chevron both surpassed profit expectations in their latest quarterly reports. • Shares of the energy majors remained muted despite the beats, pressured by Iran's submission of a new agreement proposal to the US for resuming Persian Gulf oil exports. • The developments contributed to a broader pullback in oil prices, supporting gains in US equities.

• An undisclosed major corporation reported a significant top and bottom line beat, demonstrating stronger-than-expected financial performance in its latest earnings announcement. • The company reaffirmed its full-year earnings forecast and reiterated long-term growth targets of 9% annual growth through 2027, followed by growth from 2027 through 2030. • The earnings beat and maintained guidance suggest management confidence in sustained profitability and operational execution.