With nearly half of the stocks in the Nasdaq 100 Stock Index ($IUXX) (QQQ) having reported Q2 earnings, more and more company executives are optimistic about a soft landing for the U.S. economy. According to a Bloomberg analysis, tech executives are less frequently using words like headwinds, inflation, and recession in earnings calls with analysts and investors, a positive factor for technology stocks.
Technology executives in the U.S. are talking less about recession and more about artificial intelligence (AI) this earnings season. Janney Montgomery Scott said, “Collectively, this is a positive signal with respect to business prospects and profitability, a reference to how the economy remains reasonably resilient. Since comments in conference calls tend to be forward-looking, this could suggest more improvement in earnings is ahead.”
