S&P 500 Hits Record Highs as Companies Post Strong Earnings
The U.S. stock market has touched a new record high after a very strong earnings season. Many companies in the S&P 500 have reported profits much better than expected.
Overall, earnings per share (EPS) are up 11% from last year. This is almost three times higher than what analysts thought. It shows that U.S. companies are growing strongly.
This quarter, 84% of companies beat Wall Street estimates. That is the highest in almost four years. Also, 60% of companies beat earnings forecasts by a big margin.
Not just that — 58% of companies raised their full-year guidance, which is double the number from the first quarter. This means more companies are confident about the future.
The word “recession” almost disappeared from earnings calls. Mentions of it dropped by 84% compared to the last quarter. According to Goldman Sachs strategist David Kostin, this is “one of the greatest earnings seasons on record.”
Impact:
The stock market rally might continue if earnings stay strong and more companies raise guidance. But global risks could still bring some challenges.
