Fed & Earnings Bring Volatility
A volatile week ended on a positive note as strong earnings continued to support markets. With 61% of S&P 500 companies reporting, expected Q2 2026 earnings growth has risen to 47.4%. Companies also reinforced their commitment to AI investment. Meanwhile, the Fed held rates steady but maintained a hawkish tone, pushing the 10-year Treasury yield to levels last seen in January 2025. Fed funds futures now indicate a 65% probability of a September rate hike.
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