The Globe and Mail reports in its Wednesday edition that the United States economy is gaining strength. A Reuters dispatch to The Globe reports that fiscal spending, loose financial conditions and low interest rates are driving growth. If inflation hits its target without tightening policies, it would be remarkable. This context helps explain why stock markets remain resilient despite volatility and investor concerns about the artificial intelligence boom's peak. Many are hesitant to raise cash, continuing to invest or rotate portfolios instead. Stock markets remain close to record highs after a 50-per-cent gain in major U.S. indexes over the past two years, and another 10 per cent in the first half of this year. The wealth of the richer population is rising, boosting their spending ability and helping companies increase margins in a circular economy. Only rising bond yields appear to be a red flag. Two big numbers stood out this past week: estimated annual profit growth accelerated to nearly 50 per cent for S&P 500 firms through the latest quarter; and, despite an underwhelming inflation-adjusted headline number, nominal U.S. GDP clocked an annualized growth rate of almost 8 per cent in the second quarter.