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Lofty expectations pose tough earnings test for Wall Street

Strong results from $25tn worth of companies needed to help drive rally after shaky few weeks for S&P 500
The highest growth is still expected to come from the tech sector, including the so-called Magnificent Seven

Lofty expectations for US corporate profits mean that the flood of earnings reports due in the coming fortnight will play a particularly important role in setting the direction for Wall Street stocks, investors say, after a shaky start to 2025.

The S&P 500 had its best week since the November US election last week, aided by strong numbers from the biggest banks, pushing the index back into the black for January.

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