Profits boom, jobs swoon
Earnings are booming, jobs are swooning – and investors are cheering the combination.
S&P 500 Q2 earnings growth is running at an impressive 50.4%, according to FactSet, with energy and technology leading the charge. Meanwhile, the latest US jobs data pointed to a cooling labour market.
For investors, that’s a pretty sweet mix: strong corporate profits keep the earnings story alive, while weaker economic data supports expectations of a more dovish Fed. Strong earnings, softer jobs and lower rate expectations – just what the market ordered.
This week, eyes are on US CPI update!
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