This summer brought us another Superman reboot and yet another Fantastic Four movie iteration - because apparently Hollywood looked at the calendar, saw “2025” and decided we needed to rehash the same IP for the fifth time. Somewhere between the cape flourishes, origin flashbacks and multiverse cameos, I felt it creeping in: superhero fatigue.
But here’s the thing—despite the eye rolls and recycled plot lines, the box office keeps cashing in. Nostalgia is a heck of a drug. And, as it turns out, a wildly effective moneymaker.
Sound familiar?
Because markets had their own sequel moment in July. The S&P 500 notched ten new record highs. Nvidia delivered another blockbuster earnings beat. Microsoft cruised past a $4 trillion market cap. It’s all starting to feel a little... scripted.
And yet, the audience (read: investors) keeps showing up. Because just like the studios, Wall Street knows the formula: give people what they want—AI buzz, mega-cap resilience, a soft landing subplot—and most folks will happily buy another ticket.
Even if some of us are whispering, “Didn’t we already see this in Q1?”
💥 The Mag 7: Still Box Office Gold (Mostly)
Despite whispers of fatigue, the “Magnificent 7” are still major contributors to market earnings. In fact, Microsoft, Alphabet and Nvidia were three of the six biggest drivers of S&P 500 earnings growth in Q2. Together, they’re growing profits at a 14% clip - compared to just 3–4% for the other 493 companies in the index.
But even stars have off-days. Tesla flopped in Q2, reminding us that not every cape comes with superpowers. And with only three of the original seven leading the charge this quarter, it’s clear the ensemble cast might need some rewrites going forward.
🎬 Earnings Season Plot Twist: Surprise Hit
Over 80% of S&P 500 companies beat their earnings expectations in Q2. That helped lift the index 2.2% in July, pushing year-to-date returns to 7.8%. It’s the kind of thing that doesn’t make headlines (unless you’re me), but it's proof that solid fundamentals are still playing the hero.
GDP growth came in at 3%, inflation is (mostly) behaving (2.7% year-over-year), and the job market - while softer than previously thought - is still hanging tough. The Fed kept rates unchanged for the fifth straight meeting, though even the governors are starting to disagree behind the scenes. It’s like the director and producer fighting over the final cut. (Let’s just hope it’s not the Snyder Cut of rate hikes.)
🧾 Meanwhile, in Washington...
The GENIUS Act became law, boosting crypto sentiment and sending Bitcoin to another record. Congress also passed a tax bill making Trump-era cuts permanent—a win for investors, though debt hawks might see it as pure fiscal kryptonite. With tariffs quietly hitting their highest effective rate since 1911 (yes, really) the question becomes: who absorbs the cost? So far, companies have. But how long that can last is a sequel we’re still waiting to see.
🎤 Final Scene: Stay for the Post-Credit Planning
Markets may be running familiar scripts - Mag 7 leads, AI hype, soft landings and tax extensions - but the underlying fundamentals still matter. Like any franchise, there's a point where repetition leads to fatigue. That’s when long-term planning becomes the real superhero move.
Thanks to everyone who voted in last month’s Broadcast poll - especially the 25% who appreciated the balance of humor and insight. (Your check is in the mail.) And to the 41.7% who said “It’s all good – keep ’em coming”…don’t worry, I will.
Until next time, take good care!
