US Stocks Hover Near Records as Strong Big-Tech Earnings Lift the Market

US stocks are hovering near record highs as a robust second-quarter earnings season reassures investors navigating geopolitical and inflation risks. Results from the largest technology companies have been a key engine, helping push aggregate S&P 500 profit growth toward its strongest pace in years and reviving enthusiasm for the megacap group that has led the market's advance. Gains have been broad on strong sessions, extending beyond technology into materials, industrials and financials, a sign that the rally is not resting on a single sector. Investors have largely looked past headwinds including the conflict in the Middle East and elevated energy prices, focusing instead on resilient corporate profitability and steady consumer demand. Analysts caution, however, that valuations are stretched relative to earnings, leaving little room for disappointment, and that the market's direction from here will hinge on whether profit growth can be sustained. Upcoming inflation readings and signals from the Federal Reserve about the path of interest rates are likely to shape sentiment through the rest of the summer.