The S&P 500 is supported by strong corporate earnings. Q1 2026 earnings grew roughly 28% year over year. For Q2 2026, the estimated earnings growth rate is now 23.1%. However, investors should also keep in mind that AI capex creates a favorable near-term earnings loop. The hyperscalers spend heavily on GPUs, servers, networking, power, cooling, and data centers. That spending is revenue for semiconductor and infrastructure suppliers, so companies on the selling side can show very strong earnings. At the same time, the buyers do not expense most of the capex immediately under GAAP accounting rule; they capitalize it and depreciate it over time. That creates a “golden window” for index-level earnings: suppliers recognize revenue and profit now, while buyers recognize the cost gradually.(BloFin Research)