Robust corporate performances have played a pivotal role in propelling the S&P 500 to new peaks this year, diverting attention from the Federal Reserve’s intricate journey toward lower interest rates.

As the earnings season concludes, some investors anticipate a resurgence of monetary policy as a dominant factor.

Nvidia Corp’s exceptional earnings results served as a striking conclusion to the fourth-quarter reporting period, with the soaring shares of the AI powerhouse driving the S&P 500 to recent record highs in the past week.

The benchmark index has recorded a gain of over 6.7% since the beginning of the year, Reuters reported.

With the majority of companies having reported, S&P 500 firms appeared set to achieve a 10% increase in fourth-quarter earnings compared to the same period in the previous year, based on LSEG IBES data.

This would mark the most substantial rise since the first quarter of 2022.

Written by B.C. Begley