Tariffs and AI Spending in Focus as Traders Brace for Earnings

A record-setting surge in US stocks has traders approaching the start of corporate earnings season with elevated expectations and little patience for companies that don’t meet the bar.

The S&P 500 is up 11% year-to-date, fueled in-part by a frenzy over artificial intelligence that has also driven rallies in stock markets the world over. Earnings estimates have risen in tandem: Analysts tracked by Bloomberg Intelligence expect profit growth of 7.4% for US stocks in the third quarter, up nearly two basis points since mid-August. Earnings for the MSCI All-Country World Index are seen hitting a record.

With trade tensions once ...