The second-quarter earnings season for 2025 has shown robust results among S&P 500 companies. Approximately 81% to 83% of these companies have reported earnings above analyst expectations, with an average earnings surprise ranging from 7.1% to 7.8%. Technology sector companies led the earnings beat rate at 94%, delivering a 7.8% surprise and a 7.2% relative increase. The blended year-over-year earnings growth rate for the S&P 500 stands at around 11.8%, marking the tenth consecutive quarter of positive year-over-year growth. Operating earnings are on track to reach record highs on a trailing twelve-month basis, with sectors like Communication Services and Technology showing year-over-year earnings growth of 46% and 21%, respectively. Additionally, upward earnings revisions have reached their highest level since 2021, with nearly 65% of S&P 500 companies raising their earnings guidance for the next twelve months. Despite this strong earnings performance, U.S. job cuts in July 2025 rose by 140% year-over-year and 29% month-over-month, exceeding both the post-COVID and past decade averages for July. This divergence highlights a disconnect between the stock market's performance and broader economic labor trends. Analysts note that with potential interest rate cuts anticipated, the market's upward momentum could persist.