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U.S. stock futures are trending slightly lower early Thursday as investors digest hawkish inflation survey data, rising Treasury yields, and reports that the Pentagon is preparing for potential military strikes in Iran.

The S&P 500 is heading for a 14% increase this year. Positive momentum has reigned, but the index has faced and continues to face various headwinds.

Deutsche Bank expects S&P 500 earnings growth to hold at a record 34% in the third quarter, well ahead of the 27% consensus, as AI demand and a cyclical upswing show no sign of fading.  The bank said in its Q3 earnings preview that the forces behind Q2's 34% surge, up from 25% in Q1, remain firmly in place.

Analysts expect nearly 30% year-over-year earnings growth for the S&P 500, up from 26.7% on June 30th. Profits look healthy below the Mag-7 surface, including 19% growth this year for S&P 400 MidCap operating earnings.

The current market breadth within the S&P 500, while it's near all-time highs, is historically unusual. This signal last flashed during the peak of the tech bubble.