The stock market’s recent surge has come to an end, with investors punishing companies that missed earnings expectations. This quiet reaction suggests that much of the good news is already factored into prices, and investors are holding back on their enthusiasm. In contrast, financial stocks have seen a significant beat rate this quarter, outperforming expectations by 94.4%. Despite these strong numbers, investor reactions have been muted, indicating that analysts’ expectations were largely aligned with the results.
Source: https://www.bloomberg.com/news/articles/2025-07-19/after-stock-market-s-torrid-run-earnings-misses-face-punishment