Stocks Are Jumping on Earnings Wins by the Most Since 2018
- S&P 500 members that beat EPS expectations see outsized gains
- Strong profits offsetting angst about Fed’s path, Trump
The average S&P 500 stock has been moving roughly 5.5% in either direction, above the implied move of about 3.9% priced by options markets.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
With uncertainty swirling around the outlook for inflation and interest rates, there’s been one dependable catalyst keeping Wall Street’s spirits lifted: Corporate America’s bottom line.
US companies that beat analysts’ profit estimates are seeing unusually large jumps in their stocks soon after — a sign that the latest slew of earnings reports are delivering a dose of confidence to traders even as expected policies from President Donald Trump and the direction of the Federal Reserve cast doubt on the staying power of the equity-market rally.