Souring Profit Outlooks Threaten S&P 500’s 20% Rally
- Traders are punishing stocks for weaker-than-expected guidance
- Earnings growth is crucial as rate-cut uncertainty lingers
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Strong earnings beats from Corporate America may no longer be enough to keep the stock rally going. Profit outlooks are becoming more important.
With more than 400 firms in the S&P 500 Index having reported earnings this season, 79% of them have beaten profit expectations, according to data compiled by Bloomberg Intelligence. But the median stock outperformed the index by less than 0.1% on results day — the smallest margin since late 2020.