S&P 500 Earnings Surge 15.1% in Q4 2024 Highest Growth Since 2021
The S&P 500 is on track for its strongest quarterly earnings growth since 2021, with fourth-quarter 2024 earnings projected to rise 15.1% year-over-year, according to LSEG Data & Analytics. This marks a significant jump from the 9.6% growth estimate at the start of January, fueled by better-than-expected performances in communication services, financials, and consumer discretionary sectors.
Key Drivers of S&P 500’s Earnings Boom
As of Wednesday, nearly 70% of S&P 500 companies have reported their Q4 results, and the numbers indicate resilient corporate profitability. The biggest growth contributor is communication services, which includes Meta Platforms, with an estimated 32.2% increase in earnings.
Following closely behind, financials posted an impressive 29.9% growth, while the consumer discretionary sector reported a 24.8% jump, according to LSEG.
Strong Consumer Spending Fuels Market Optimism
According to Jake Dollarhide, CEO of Longbow Asset Management, the U.S. consumer remains strong, helping corporate earnings remain robust despite Federal Reserve rate uncertainty and potential tariffs from the Trump administration.
The S&P 500’s earnings momentum has provided stability to the stock market, even as investors remain cautious about interest rate cuts and broader economic policies.
S&P 500’s Strongest Growth Since 2021
This 15.1% Q4 earnings increase marks the highest quarterly growth for the S&P 500 since Q4 2021, when profits soared 32.1% following the post-COVID recovery.
At its core, the market remains driven by corporate earnings, dividend policies, and long-term growth trajectories, reinforcing investor confidence despite external economic uncertainties.
