Analytical Reviews

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Wall Street has the best earnings reporting season in 2 years


May, 07 2024
watermark Economic news

The US stock market has been stable in recent weeks, despite reports of a steady increase in inflation and the possible retention of a high interest rate by the Federal Reserve System. This is due to the companies' better-than-expected financial performance in the first quarter.


At the moment, 80% of companies in the S&P 500 index have already published their reports, and analysts note earnings per share growth for the quarter at 5%, which is the highest figure for the year since the second quarter of 2022. This also exceeds the expectations of analysts, who had forecast growth of 3.2% before the start of the reporting season.


Experts note that despite the high interest rate, which usually negatively affects the value of shares, good financial results of companies in the first quarter supported the market. According to Wall Street investors, strong profit growth has led to an 8% increase in the index this year, and this trend is expected to continue.


Profit growth further supports a bullish view of the fundamentals of the S&P 500 index, even despite expectations from the Fed and current economic conditions. Optimism is also added by the fact that net profit in the first quarter increased by 11.7%, which exceeds the average growth over the past 5 years by 11.5% and higher than in the same period a year ago. This may be due to cost reductions by large technology companies and other enterprises from various sectors.


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