Happy Wednesday! When Jamie Dimon speaks, markets tend to listen. The CEO of JPMorgan is calling out a potential earnings freeze that could catch investors off guard. Find out what's fueling this bold prediction — and what it could mean for your next move.

Also, tech’s biggest names just posted their strongest earnings beat in years, reigniting questions about market leadership. And with one key player still on deck, the market could be in for another surprise.

Plus, if you’re looking to capitalize on seasonal market patterns with a data-driven edge, check out today’s sponsor.

In Today's Edition

• SUMMER SEASONAL STOCK WATCHLIST

• MARKET RECAP

• FIVE ZINGERS

• TOP TRADING SETUPS

• MARKET HISTORY

• ONE FOR THE ROAD

Jamie Dimon, Who Flagged Trouble Before 2008 Lehman Brothers Collapse, Now Warns S&P Earnings Could Fall To 0%: 'Rougher Time For Markets,' Says Dan Niles

When Jamie Dimon speaks, Wall Street listens.

And for good reason, as the CEO of JPMorgan has sounded the alarm before major events in the past. Now, he's raising a new red flag: S&P 500 earnings growth.

Currently, the market expects earnings growth to rise 12% this year, however, Dimon notes that it could drop to zero, due to high asset prices, narrow credit spreads, along with several other pressure points.

He’s not alone. Hedge fund manager Dan Niles has amplified the warning, highlighting the enormous insight JPMorgan has into the economy with its $4.4 trillion in assets. “JPM has more granular data on the health of the U.S. economy than almost anyone,” he said.

What’s driving this stark outlook, and how can investors position themselves if Dimon’s ominous call proves right? Read on to find out.

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Yesterday: Stocks finished lower Tuesday, with all major indexes in the red. The S&P 500 snapped a six-day winning streak, while the Nasdaq and Dow saw their three-day winning streaks come to an end. On the corporate front, Home Depot reported better-than-expected sales for Q1; however, earnings came in lower than expected. The company did maintain its full-year guidance and decided against raising prices due to tariffs. Earnings season continues to wind down, with retailers in focus this week. Overall, the S&P 500 is on track for 13% earnings growth in Q1, up from earlier estimates. However, expectations for the upcoming quarters have been revised lower, with single-digit earnings growth expected this year.

On Our Radar: With no economic data being released today, investors will continue to monitor updates on the federal budget and deficit, as well as ongoing trade negotiations. On the earnings front, Snowflake (SNOW), Zoom (ZM) and Domo (DOMO) headline a slate of companies that will report after the bell today.

The Not-So-Magnificent 7: Peter Lynch’s classic PEG ratio test just put Big Tech under the microscope — and only three of the Magnificent 7 passed. Find out which ones made the cut and still offer real growth at a fair price.

Cyber Dip: Palo Alto Networks beat earnings expectations and raised full-year guidance, yet shares still dropped after hours. Discover what’s behind the slide and why Wall Street shrugged off the strong quarter.

Nailed It: Toll Brothers, a luxury homebuilder, hammered Wall Street expectations, posting a 20% earnings surprise and record-setting sales, even as new contracts dipped. With margins strong and the stock climbing after hours, read on to see how this homebuilder is laying the foundation for more gains.

Earnings Jolt: Keysight Technologies shocked the Street with a Q2 earnings and revenue beat, fueled by strong gains in communications and semiconductor demand. With upbeat full-year guidance, click to see why KEYS might be wired for more upside.

Retail Surge: While institutions and money managers pulled $25 billion out of the market this year, retail investors have taken a different approach as they’ve plowed a record $122 billion into ETFs (SPY, QQQ and MAGS). Main Street is playing offense while Wall Street plays defense. Who’s playing it smart? Dive in to see.

Every Friday, Benzinga Edge members get five hidden-gem stock picks from our ‘Whisper Index.' It flagged Uber, MicroStrategy, Coinbase… all before major runs.

Want the next five at a special Memorial Day discount? 

On This Day In 2015…

Shopify made its public debut on the NYSE and TSX, pricing shares at $17 and raising $131 million. The stock soared over 50% on its first day, closing at $25.86 and giving the Canadian e-commerce platform a market cap of nearly $2 billion. It marked the start of Shopify’s rise as a major player in online retail infrastructure. Today, Shopify has a market cap of $140 billion.

QUOTE OF THE DAY

“The individual investor should act consistently as an investor and not as a speculator.”

— Benjamin Graham

Magnificent 7 Stun The Street With Best Earnings Beat Since 2021

In a quarter that had many on Wall Street bracing for mediocrity, six of the so-called “Magnificent Seven” — with Nvidia still set to report next week — combined to outperform the S&P 500 and deliver their biggest earnings beat in years.

Just when many thought the era of mega-cap dominance might be slowing down, these market titans not only showed resilience, but a resurgence, delivering earnings per share growth of 28% year-over-year — nearly triple that of the broader S&P 500 (9%).

But not all giants moved in lockstep, with some companies growing quicker than others. Tesla, with its challenges, struggled as it saw its earnings growth fall by 40% year-over-year. Even with Tesla’s earnings plunge, the Magnificent 7 still combined to easily outperform the rest of the S&P 500.

All eyes now turn to Nvidia in what will likely be the most anticipated report this quarter. The results could add more fuel to the rally, or change the tone entirely.

And if you're tracking market momentum or rethinking your tech exposure, now's the time to dig deep and see which companies are leading the charge, and which ones are falling behind.

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