A Doomsday Recession Mentality is Keeping the S&P 500 Strong

Companies are ready for a recession that never seems to come

Earnings surprises are on pace for their best level since 2022

North America's largest companies are experiencing a notable surge in their quarterly earnings, surpassing expectations by a significant margin. In at least two years, these companies have diligently managed their costs, driven by concerns over a potential recession. With 459 companies from the S&P 500 having reported their earnings this quarter, the average profits have exceeded expectations by an impressive 8.4%, as per data compiled by Bloomberg.

Moreover, approximately 79% of these companies have outperformed profit expectations, indicating a positive trend compared to the previous quarter's 76% figure. This robust performance highlights the resilience and adaptability of these companies in navigating challenging economic conditions and underscores their ability to deliver solid financial results.