Stunning US profit strength ignites stocks' charge to record peaks

A humming U.S. corporate profit engine is at the heart of the U.S. stock market's rally to record highs - an encouraging sign for investors as long as the fuel driving profits keeps flowing. More than two-thirds through ​the first-quarter reporting season, S&P 500 companies are on track for their highest quarterly earnings growth in more than four years. Future projections are also growing rosier: Analysts' estimates ‌for future 12-month U.S. earnings have risen by over 10% since the start of the year, according to LSEG Datastream. The benchmark S&P 500 is up 6% for the year, building on three straight years of solid double-digit percentage gains. The ​index has surged more than 14% since March 30, following a swoon sparked by the start of the U.S.-Israeli war with Iran. [https://www.reuters.com/business/stunning-us-profit-strength-ignites-stocks-charge-record-peaks-2026-05-06/](https://www.reuters.com/business/stunning-us-profit-strength-ignites-stocks-charge-record-peaks-2026-05-06/)