More than 75% of S&P 500 firms that have reported results so far saw growth in earnings versus a year earlier

The latest reporting season suggests areas including industrials, consumer products and healthcare are now starting to carry their own weight in driving index returns, a trend that investors say is only expected to extend.

“Growth is becoming a bit more abundant and that means earnings are becoming broader as well,” said Guy Miller, chief strategist at Zurich Insurance. “What we are seeing is you don’t have to be in technology companies.”

Strategists, including those at JPMorgan Chase & Co. and Goldman Sachs Group Inc., expect the broadening to continue over the coming months, underpinned by a robust outlook for economic growth that will keep driving company earnings.

“A strong and accelerating pace of economic growth in the first half of 2026 creates larger near-term tailwinds for smaller and more cyclical stocks than for the largest stocks in the market,” Goldman strategist Ben Snider wrote in a recent note.

Analysts are also predicting the earnings gap between the seven biggest tech stocks and the remaining 493 in the S&P 500 will narrow through the rest of this year.

LA Times