The S&P 500 is projected to see earnings growth of 8.6% in Q2 2024 compared to the same period last year, bolstered by a 4.6% increase in revenues. This growth trend reflects revisions predominantly in the Energy sector, which is also poised for a positive reversal after four quarters of negative performance.
Key sectors contributing to this optimistic outlook include Tech, Utilities, Transportation, and Autos, with the Tech sector expected to dominate, accounting for nearly 30% of S&P 500 earnings. Notably, Tech earnings for Q2 are anticipated to rise by 15.1% year-over-year, and full-year growth is forecasted at 17.1%. Positive revisions have been seen for major companies like Meta Platforms and Nvidia Corp.
Margins for Tech companies are set to exceed last year’s records, suggesting further revenue strength. Excluding the Finance sector, overall earnings growth remains robust, driven largely by revenue increases and margin improvements across 11 of the 16 Zacks sectors.
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