S&P 500 Earnings Depend on AI Infrastructure Doing the Heavy Lifting

The S&P 500 is on track for its best quarter since Q2 2020 with over 14% returns. Q2 earnings are expected to grow around 23-30%, heavily driven by AI infrastructure stocks and memory chip makers. Technology sector, particularly NVIDIA and Micron, is expected to contribute 60% of S&P 500 EPS growth. Profit margin expansion across sectors will be critical to sustaining this earnings growth momentum.