Institutions: S&P 500 Index Poised for Strongest Earnings Growth Since 2021

According to Odaily, as growth momentum expands beyond AI-driven gains to encompass the majority of U.S. companies, the S&P 500 Index is on track for its strongest earnings growth in five years. Data from institutions shows that approximately 93% of companies in the benchmark index have reported earnings, with 83% exceeding analyst expectations. This rate is the highest since 2021. Data indicates growth across all sectors except healthcare. Overall, strong performances in the energy and technology sectors have offset weak consumer confidence triggered by rising oil prices due to the Iran conflict. Additionally, the communication services and consumer discretionary sectors have shown the most impressive results, while materials and industrial sectors also surpassed expectations. Analysts Welnhofer and Cain stated that if cyclical and non-AI sectors begin to contribute, and Nvidia along with the AI sector continue to generate substantial earnings, 2026 may not see a late-cycle slowdown but could instead resemble a repeat of the post-pandemic profit surge witnessed in 2021. (Jin Shi)