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Fundamentals are also on their side. Earnings growth for the S&P 493 is projected to accelerate to 9% in 2026 from 7% this year as the earnings contribution from the seven largest companies in the S&P 500 is set to fall to 46% from 50%, according to data from Goldman Sachs Group Inc.
Microsoft (NASDAQ: MSFT) has delivered solid returns in 2025, but shares remain below their 52-week high of $553.50. The stock currently trades around $479. Despite the pullback, fundamentals remain robust.
Many Wall Street experts still expect to see strong growth from the S&P 500 in 2026.
Oracle's earnings showed mixed results, leading to an 11% drop. Broadcom's strong earnings overshadowed by warnings of margin pressures.
The valuations of some artificial intelligence companies are approaching those of the dot-com boom. But investors worry that pulling money from today’s market risks future gains.
Slides in Broadcom and Oracle weighed on indexes at the end of a volatile week.
Wall Street ended lower as Nasdaq fell 1.69% to 23195.17, S&P 500 dropped 1.07%, and Dow Jones Industrial Average slipped 0.51%.