Wall Street anticipates a significant increase in corporate profits for 2024 and 2025, driven by a robust economy and easing inflation. However, companies face ongoing uncertainties, including potential economic policy changes and volatile consumer spending.
Wall Street expects corporate profits to surge in 2024 and forecasts an even stronger jump for 2025. Companies still face a long list of uncertainties in the year ahead, including economic policy shifts, reheated inflation and shifts in the jobs market and consumer spending. Earnings for companies within the S&P 500 are expected to have grown by about 9.4 per cent in 2024, according to FactSet.
Companies will start reporting their final quarterly financial results for that year in the next few weeks. It will mark a sharp gain from 1.4 per cent growth in 2023. Profit growth for companies followed the rising economic tide. The labour market remained strong, helping support consumer spending for goods and services. Prices remain high on many items and services, but the rate of inflation has eased significantly, helping companies lower costs in some cases and relieving some pressure on consumers. Wall Street’s 2025 forecast for over 12 per cent profit growth relies largely on those conditions continuing to prevail. Earnings will be closely-watched as a key measure to justify the broader markets gains. “With the market looking expensive versus history, it wouldn’t be surprising if earnings growth were a greater driver of market performance than in recent years, making companies’ ability to deliver on profitability estimates all the more critical in 2025,” said Ross Mayfield, investment strategist at Baird Private Wealth Management, in a research note. The Federal Reserve’s path ahead for interest rates also remains a factor for companies and consumers looking for less pressure on borrowing costs. The central bank cut its benchmark interest rate three times in 2024. Expectations for further cuts have been tempered by worries over stubborn inflation. The rate of inflation had eased but remains stuck just above the Fed’s target rate of 2 per cent. Recent months have shown signs that it even edged highe
CORPORATE PROFITS WALL STREET ECONOMIC FORECAST 2024 2025 INFLATION INTEREST RATES
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wall Street hopes rate cuts will force clients out of cash in 2025The Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Read more »
Wall Street Eyes 2025 Volatility Spikes on Trump Tariffs, GeopoliticsInvestors anticipating another calm year in 2025 should be on guard for more shocks like the one seen in August as uncertainty around Donald Trump’s tax and tariff policies threaten to roil markets.
Read more »
Wall Street Optimistic for 2025 Stock Market GainsInvestors are feeling confident about the future of the stock market, expecting continued growth in 2025. Despite initial concerns about a recession, the market has proven resilient, with the S&P 500 on track for its second consecutive year of strong gains.
Read more »
OPEC again cuts its 2024 and 2025 oil demand growth forecastsOPEC said it now expects 2024 global oil demand to rise by 1.61 million barrels per day, down from its forecast of 1.82 million bpd last month
Read more »
OPEC again cuts 2024, 2025 oil demand growth forecastsOPEC cut its forecasts for oil demand growth this year and next on Wednesday, highlighting weakness in China, India and other regions in the producer group's fifth consecutive downward revision.
Read more »
Jonathan D. Corpina's 2024 Market Wrap Up and Resolutions for 2025Jonathan D. Corpina, Senior Managing Partner at Meridian Equity Partners, offers insights into the 2024 market and provides four resolutions for investors in 2025 to achieve financial prosperity.
Read more »