Wall Street Live

Tech Titans to Propel S&P 500 Earnings, AI Boost Ahead

By Bill Bullington

4/4, 08:01 EDT
  • US tech sector is expected to receive a boost in the first-quarter earnings season due to driving profit growth and improved estimates.
  • While overall S&P 500 1Q earnings are projected to rise 4.1% y/y, excluding the Magnificent Seven stocks, they are expected to fall 1.9%. However, the Magnificent Seven stocks are anticipated to see a significant rise in EPS, particularly in communication services and info tech sectors.
  • Artificial intelligence is expected to drive further profit gains for info tech and related sectors, with hardware companies benefiting more than software makers. All S&P 500 sectors may see positive news in 1Q reports as expectations have been lowered.