9 hours ago
S&P 500 Rally Faces Key Test as Profit Engine Is Seen Sputtering
The S&P 500 Index is on the cusp of a record high but with earnings season just weeks away, the foundation of the rally is about to get a major test.
With tariff headwinds still a concern, Wall Street sees profit growth of 2.8% year-over-year for the second quarter for the benchmark, according to data compiled by Bloomberg Intelligence. That would be the smallest jump in two years. Adding to the concern, only six of the 11 S&P 500 sectors are projected to post a bump in earnings, the fewest since the first quarter of 2023, estimates compiled by Yardeni Research show.
