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Earnings season to test hopes for broader stocks rally

July 5, 2024

Hopes that the U.S. stocks rally will broaden beyond megacaps like Nvidia (NASDAQ:NVDA) will be tested in coming weeks as investors learn whether profit growth from other companies is starting to catch up with that of the tech-related leaders.

The S&P 500 has rallied 16% so far in 2024, driven by a handful of massive stocks poised to benefit from emerging artificial intelligence technology. Only 24% of stocks in the S&P 500 outperformed the index in the first half, the third-narrowest six-month period since 1986, according to BofA Global Research strategists.