Can S&P 500 ETFs rally further?
The post Can S&P 500 ETFs rally further? appeared on BitcoinEthereumNews.com. The Federal Reserve recently cut rates by 25 bps and indicated that two more reductions are likely by the year-end. Chair Jerome Powell outlined the move as a “risk-management” step to protect a softening labor market. The decision has strengthened Wall Street’s belief that the current market rally still has legs. Below we highlight a few reasons that could boost S&P 500 ETFs ahead. Note that SPDR S&P 500 ETF Trust (SPY – Free Report) has gained about 17% over the past year and 14% so far this year. Corporate earnings strength For 2025 Q3, total S&P 500 index earnings are expected to be up 5.1% from the same period last year on 6.0% higher revenues. Unlike other recent periods, the revisions trend has been positive, with estimates for Q3 modestly up since the quarter got underway, per the Earnings Trends issued on Sept. 17, 2025. For the whole calendar year, total S&P 500 earnings are expected to increase by 9.3% in 2025, with the growth pace improving to 10.4% when the Energy sector drag is excluded. A total of 10 sectors are expected to produce positive earnings growth in 2025. The “Magnificent 7” companies are currently expected to bring in 25% of total S&P 500 earnings in 2025 and account for 34.3% of the index’s total market capitalization. AI boom to keep powering S&P 500 Big Tech or the Mag 7 stocks that are pioneering the AI boom (NVIDIA, Microsoft, Apple, Alphabet, Meta, Amazon, Tesla) make up about 35% of the S&P 500 market cap. For the Mag 7 group, Q3 earnings are expected to be up 12.2% from the same period last year on 14.6% higher revenues, which would follow the group’s 26.4% earnings growth on 15.5% revenue growth in the preceding period, per the Earnings Trends. For the…
The post Can S&P 500 ETFs rally further? appeared on BitcoinEthereumNews.com.
The Federal Reserve recently cut rates by 25 bps and indicated that two more reductions are likely by the year-end. Chair Jerome Powell outlined the move as a “risk-management” step to protect a softening labor market. The decision has strengthened Wall Street’s belief that the current market rally still has legs. Below we highlight a few reasons that could boost S&P 500 ETFs ahead. Note that SPDR S&P 500 ETF Trust (SPY – Free Report) has gained about 17% over the past year and 14% so far this year. Corporate earnings strength For 2025 Q3, total S&P 500 index earnings are expected to be up 5.1% from the same period last year on 6.0% higher revenues. Unlike other recent periods, the revisions trend has been positive, with estimates for Q3 modestly up since the quarter got underway, per the Earnings Trends issued on Sept. 17, 2025. For the whole calendar year, total S&P 500 earnings are expected to increase by 9.3% in 2025, with the growth pace improving to 10.4% when the Energy sector drag is excluded. A total of 10 sectors are expected to produce positive earnings growth in 2025. The “Magnificent 7” companies are currently expected to bring in 25% of total S&P 500 earnings in 2025 and account for 34.3% of the index’s total market capitalization. AI boom to keep powering S&P 500 Big Tech or the Mag 7 stocks that are pioneering the AI boom (NVIDIA, Microsoft, Apple, Alphabet, Meta, Amazon, Tesla) make up about 35% of the S&P 500 market cap. For the Mag 7 group, Q3 earnings are expected to be up 12.2% from the same period last year on 14.6% higher revenues, which would follow the group’s 26.4% earnings growth on 15.5% revenue growth in the preceding period, per the Earnings Trends. For the…
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