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S&P 500 set for Q4 strength as earnings growth stays robust

Q2 S&P 500 earnings growth topped 50%, with energy and the AI boom cited as key tailwinds heading into year-end.

Reported · Written up by our desk · Sectors

MarketBeat Ratings points to seasonal patterns and continuing earnings momentum suggesting the S&P 500 could extend gains through Q4. The outlet notes that Q4 is typically the strongest month of the year, and that money often returns after the usually volatile summer trading period.

Earnings are also a central part of the outlook, with MarketBeat Ratings saying S&P 500 earnings growth topped 50% in Q2 and beat the consensus estimate by nearly 3,000 basis points. The outlet adds that strength is expected to continue into the current quarter and beyond.

The report highlights two drivers for performance, energy and AI-related results. It points to high oil prices supporting energy earnings, and cites examples including Exxon Mobil and NVIDIA, with NVIDIA described as having posted 140% year-over-year non-GAAP EPS growth and 85% revenue growth in its latest reported quarter.

On the macro side, MarketBeat Ratings argues the FOMC is unlikely to hike interest rates this year, noting oil prices are a key driver of inflation and that the central bank has limited control over that factor. The outlet also says energy prices and inflation risks are real, but the committee is unlikely to be able to curb oil demand through rate moves alone.

Latest closeS&P 500 7,785.76 ▼0.2%

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