Analysts anticipate upbeat earnings season as estimates climb
Wall Street is expected to have a relatively calm earnings season, with negative earnings preannouncements well below typical levels and consensus estimates on the rise. JPMorgan strategist Mislav Matejka says rising estimates reflect genuine improvements in corporate fundamentals rather than analyst complacency. The S&P 500 is seen posting about 23.3% year-over-year Q2 earnings growth, above the five-year (16.4%) and 10-year (10.3%) averages. Ten of 11 sectors are expected to grow, led by Energy, Technology and Materials, with big hyperscalers’ capex boosting hardware and data-center spending. Despite inflation and geopolitics, consumer resilience has helped keep the broader U.S. economy stable.