Wall Street continues its upward climb, supported by robust corporate earnings and growing investor confidence in artificial intelligence (AI) innovation. With more than half of the S&P 500 companies having reported their second-quarter results, earnings season has so far exceeded expectations, reinforcing the bullish sentiment that has pushed major indexes near record highs.

According to data from LSEG, 297 companies from the S&P 500 have released earnings reports as of Thursday. The year-on-year earnings growth for Q2 is now projected at 9.8%—a substantial increase from the 5.8% forecast made on July 1. This positive revision highlights the resilience of corporate America amid ongoing global uncertainties.

Much of the investor enthusiasm stems from the AI boom, which continues to act as a powerful tailwind for tech stocks. Big names in the sector have posted better-than-expected results, further validating the long-term potential of AI-driven growth.

However, lingering trade tensions and renewed tariff discussions are tempering investor appetite, keeping market momentum in check. While earnings have provided a strong foundation, concerns over geopolitical risk and economic policy remain a critical backdrop.

Still, the broader market outlook remains optimistic, with earnings strength and AI momentum helping to cushion against macroeconomic headwinds. Investors are expected to stay focused on upcoming economic data and guidance from major central banks to assess whether this rally has further room to run.