The first quarter of 2026 saw earnings growth in the S&P500 grow by 28% over the same period in 2025.

Earnings for the components of the S&P500 beat expectations handily. Earnings are growing by more than 13% year over year, and this is the fifth consecutive quarter to see double-digit earnings growth.

We have declining jobs and decelerating wage growth, and the Fed is cutting the rate it lends to other banks as an assumed tool to thwart recession.

If the economy is slowing down, why is the stock market doing so well? If inflation might be 4.5%, why is the Fed lowering rates?

While not all components of the S&P 500 have reported yet, the Technology sector is growing earnings by 21% year over year.

As we begin to close out the second quarter of 2025, the financial landscape continues to change rapidly. Fortunately, the abrupt changes have been positive for markets over the past several weeks.

With the Q4 2024 earnings season winding down, 76% of companies have reported earnings above expectations, which is below the 5 year average but above the 10 year average.

We are in the busiest few weeks of earnings season for Q4 2024. Earnings growth for Q4 as of December 31 was expected to be just under 12% vs Q4 2023, the highest in 3 years.