The simple explanation for why the stock market is holding up 💪

Are we really buying these earnings forecasts? And are elevated valuations justified?

The S&P 500 has recovered almost all of its recent losses despite lingering uncertainty about tariffs. (Source: Yahoo Finance)

Corporate America said the first quarter (Q1) was better than expected. And despite lingering policy uncertainty, they said the outlook for earnings isn’t obviously bad.

Because earnings are the most important driver of stock prices, resilient earnings prospects are the simple reason the stock market has held up despite the murky business backdrop.