Profit growth in US stocks expands beyond the "Big Seven"
Another quarter of financial reporting season for US companies is entering its final stage. In addition to the seven major technology companies, other components of the S&P 500 Index are expected to achieve their first profit growth since the fourth quarter of 2022. Data shows that earnings of S&P 500 Index components in the second quarter are expected to increase by 7.4% compared to the same period last year. Key indicators of US consumer health, such as Home Depot, Walmart, and Target, have not yet released their performance reports, which will be closely watched. Traders are feeling uneasy about the possibility of an economic slowdown
As the latest quarter of financial reports from American companies enters its final stage, one thing is clear: companies outside the artificial intelligence boom are finally beginning to see the long-awaited recovery, and this positive sign is not to be missed. Over the past few quarters, the profit growth of the seven major tech companies has driven the rise of the S&P 500 index. However, institutional data indicates that this situation is about to change, as apart from the so-called "Magnificent Seven," other components of this benchmark index are expected to achieve their first profit growth since the fourth quarter of 2022. Data shows that the earnings of S&P 500 index component stocks (excluding the Magnificent Seven) in the second quarter are expected to increase by 7.4% compared to the same period last year, after five consecutive quarters of decline. Although over 80% of component companies have already reported their performance, major indicators of American consumer health such as Home Depot, Walmart, and Target have yet to announce their results. Clues revealed by these financial reports regarding consumer spending will be closely watched, as traders remain concerned about the possibility of an economic slowdown
