Strong Corporate Profits Drive Wall Street Record

Strong corporate earnings, and the Trump administration’s indefinite ceasefire in the US-Israel war with Iran, were enough for Wall Street to continue its march to record highs Wednesday. The continuing disconnect with other economic currents—such as the affordability issues facing American households, sinking consumer confidence and an increasingly difficult job market—could be tied to investor interest in something else entirely: profit.

Strong company profits as well as the revival of the artificial-intelligence trade have buoyed stocks despite the above, or the continuing geopolitical risks associated with the conflict in the Middle East. Almost 80% of the S&P 500 companies reporting first-quarter results have beaten analyst earnings estimates so far, according to data compiled by Bloomberg.