The most prominent US stock indexes smashed records, closing at historical highs on Wednesday, after technology stocks surpassed dotcom bubble levels.
Despite the sharp drop in IBM (NYSE:IBM) shares, thanks quarterly revenue missing expectations, the index rose 0.31%. The S&P 500 added 0.54%, while the Nasdaq 100 collected 0.64% before its closed for the evening; all reached record closing highs.
The fundamental business models of these tech stocks should be emulated as they are some of the best examples in business right now. You can see the fruits of this in the solid earnings reports.
With drama stewing in Washington, investors fear that the tax-reform and increased infrastructure promised may not materialise. This has led investors to seek out companies with robust profits and sales.
The market is heavily focused on fundamentals right now, homing in on earnings as a solidifying measure for the recent rally in equity markets.
It is forecasted that there will be an almost 9% rise in second-quarter earnings and a 4.6% increase in S&P 500 company’s revenue.
Bank earnings have performed well however failed to ignite investor demand. However, investors had expected good earnings and a hawkish fed, much of the bullish sentiment has already been priced into the market.