Analysts: tech and AI lift S&P 500 Q3 profits 31%
Big tech and AI companies are expected to give third-quarter US earnings a major boost this quarter.
Analysts predict S&P 500 profits will jump 31% compared with last year, thanks mostly to heavyweights like Alphabet, Amazon, and Meta.
This momentum is already showing up in the stock market, and earnings season kicks off soon with big banks like JPMorgan Chase and Goldman Sachs.
Energy earnings expected to spike 115%
According to Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute, tech and AI firms could account for up to 80% of this growth.
The energy sector is also making waves with an expected 115% earnings spike, fueled by global tensions such as the U.S.-Israel-Iran situation.
Still, as Anthony Saglimbene, chief market strategist at Ameriprise Financial, points out, some wonder if these gains can top last quarter's nearly 54% leap.