Top Stocks to Watch Now: The Bank-and-Chip Test That Could Decide Wall Street’s Next Move
Wall Street’s next move hinges on whether profits can broaden beyond artificial intelligence, not on another easy headline beat. The answer is cautiously positive, but the bar is high: year-forward S&P 500 earnings estimates have risen 21% in 2026, roughly twice the index’s gain, while projected second-quarter profit growth has been revised to 23.4% from 15.2% in January. That lifts the growth hurdle by about 54%. Technology earnings are expected to jump more than 65%, so Tuesday’s banks will test whether the rally can spread; chip-equipment and contract-manufacturing leaders later in the week will test valuation. “Earnings are even stronger,” Nationwide strategist Mark Hackett said.
