Earnings are expected to Broaden in late 2024 with Earnings growth of S&P500 Excluding Magnificent 7 going from -1% in Q1 2024 to the expected 6% in Q2 2024, 7% in Q3 2024, and 19% in Q4 2024.
The higher chances of an interest rate cut could drastically improve the outlook of the Real Estate, Financials, and Banking sectors.
Russell 2000 index is up more than 7%.
The equal-weight S&P 500 has outperformed the traditional market cap-weighted S&P 500.
“Bank of America's earnings analysis shows the 493 stocks not including the Big Tech “Magnificent Seven” are expected to grow earnings year over year for the first time since 2022 during the current reporting period.”
“the earnings growth of those stocks is expected to pick up in the coming quarters, while Big Tech is expected to see its earnings growth slow.”
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