S&P 500 sees 17% increase led by tech and AI stocks, with expected earnings growth

From NASDAQ: 2024-07-11 15:00:00

The S&P 500 saw a 17% increase this year, led by tech and AI stocks like NVIDIA (NVDA), contributing to a third of the gains. However, 493 other stocks faced an earnings recession with no year-over-year growth since Q4 2022 as per Yahoo Finance.

Analysts from Bank of America predict a turnaround in earnings for most S&P 500 companies by Q2 2024, with growth forecasts of 6%, 7%, and 13% in Q2, Q3, and Q4 respectively. Magnificent Seven companies anticipate a 25.5% earnings boost in Q2, while other S&P 500 stocks may see a 5% growth.

The S&P 500’s divergence between AI-focused stocks and others raises concerns on Wall Street. Increased earnings in non-AI stocks could boost earnings ETFs like WisdomTree U.S. LargeCap ETF (EPS). With a Zacks ETF Rank of #3, EPS has exposure to various sectors and charges 8 bps in fees.

WisdomTree U.S. LargeCap ETF (EPS) holds 500 stocks with each having less than 5.92% share. Key sectors like IT, financials, communication services, and healthcare are well represented. With a Zacks ETF Rank #3 and a medium-risk outlook, EPS is positioned to benefit from potential earnings improvements and diversification across sectors.



Read more at NASDAQ: ETF in Focus as S&P 500 Earnings Improves Beyond AI