US stocks in August were marked by the strength of large-cap technology stocks, while solid corporate earnings supported the market. Although there are many uncertainties from September onward, strong earnings are being viewed as a source of support.
Large-cap technology stocks stood out for their strength in August 2026, and second-quarter earnings growth reached 33.8% year on year. This exceeded the 30% earnings growth recorded in the first quarter, and earnings frequently beat expectations. Third-quarter earnings growth is also forecast at 24.3%. Against the backdrop of this earnings growth, forecasts for 2027 and 2028 earnings have also been raised, and the revisions are being viewed as a factor supporting share prices.
Factors supporting US stocks include (1) solid corporate earnings, (2) ETF fund inflows running at a record pace, (3) favorable supply and demand conditions, with cumulative share buybacks exceeding $1 trillion, and (4) a cautious stance among individual investors. In particular, the American Association of Individual Investors' bull-bear ratio is neutral, suggesting that steady buying is continuing without excessive concentration on the buy side.