Stock Prices Soar as Key Driver Surges: Morning Brief

Despite market instability, corporate earnings, which are the most important long-term driver of stock prices, have been improving. Analyst estimates for the third quarter, fourth quarter, and remainder of 2023, as well as 2024 full-year forecasts, have been raised during July and August, contrary to the usual trend of downward revisions. While earnings for S&P 500 companies have declined in Q2, analysts are growing more optimistic about the outlook for the rest of this year and into 2024.