Wall Street Week Ahead: AI gains, strong earnings support US stocks as tariff woes linger

Strong second-quarter earnings, particularly from AI-related companies like Microsoft and Meta, have boosted investor confidence, pushing stocks near record highs. Despite earlier concerns about competition and tariffs, the AI trade is thriving, reassuring investors. While August's volatility might cause short-term dips, analysts suggest these pullbacks are buying opportunities, especially in mega-cap tech stocks that heavily influence the S&P 500's performance.