Positive. Strong Q4 earnings season, positive guidance, and projected growth expected to benefit sector ETFs.

From Zacks Investment Research: 2025-01-24 15:08:28

The Q4 2024 earnings season has started strong, with major banks exceeding estimates and providing positive guidance for the future. S&P 500 earnings for 2025 are expected to rise by 13.6% with a 5.3% increase in revenues. All 16 Zacks sectors are projected to see growth, with 10 sectors anticipating double-digit increases. The “Magnificent 7” group is expected to have 2025 earnings up by 15.7% on 12.7% higher revenue. Additionally, sector ETFs like XLK, XLF, XLY, and XLV are poised to benefit from these trends in the coming year.



Read more at Zacks Investment Research: Q4 Earnings Show Promise: Sector ETFs to Win – January 24, 2025