Finance

Corporate earnings in the US surged to a record annualized $4.42 trillion in the first quarter of 2026, driven largely by efficiency gains from artificial intelligence investments. After-tax profits have reached 12.4% of the nation's GDP, the second-highest level ever recorded, as the upcoming second-quarter reporting season prepares to highlight results from major consumer and transportation firms.

US Treasury yields have moderated slightly as a cooling labor market reduces the perceived need for aggressive Federal Reserve rate hikes in the immediate term. The 10-year Treasury yield remains a significant competitor to equities at approximately 4.49%, while the yield curve maintains an upward slope that reflects persistent concerns regarding long-term inflation.

Bitcoin and Ethereum have initiated a rebound in early July, with Bitcoin hovering near $61,565 and Ethereum gaining over 6% following a period of sustained ETF inflows. The market is increasingly maturing into a landscape where digital assets are integrated into institutional portfolios, though it remains sensitive to regulatory developments and macroeconomic shifts.