Is the Q2 earnings season make or break for US equities?

Soared to record levels earlier this month

Hardeep Tawakley  Hardeep Tawakley
clock • 5 min read

In a far cry from the global stockmarket rout seen in the early part of the year, US equities soared to record levels earlier this month as investors viewed the asset class as a safer prospect against a backdrop of increasing European political risks, while bond proxies benefitted from the search for yield.

After suffering outflows of some $83bn in the first half of the year, US equity funds saw inflows of $12bn in the week to 13 July alone, leading both the Dow Jones and S&P 500 to reach a 15-month peak on 14 July. The S&P 500 has rallied by more than 25% since the index plummeted to a low in February, and has now broken out of its trading range for the last 14 months. Investors were buoyed as widely-held fears of a US recession at the beginning of the year have now all but disappeared following better-than-expected economic data - the latest being June's non-farm payroll report which s...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

SEC bolsters fraud fight with launch of cyber and emerging technologies unit
US

SEC bolsters fraud fight with launch of cyber and emerging technologies unit

Fighting cyber-related misconduct

Sorin Dojan
clock 21 February 2025 • 1 min read
JM Finn's Jon Cunliffe: Trump's long shadow over fixed income markets
US

JM Finn's Jon Cunliffe: Trump's long shadow over fixed income markets

'The things bond managers fret about'

Jon Cunliffe
clock 20 February 2025 • 3 min read
Fed signals pause on interest rates cuts until 'further progress on inflation' is made
US

Fed signals pause on interest rates cuts until 'further progress on inflation' is made

4.25%-4.5%

Sorin Dojan
clock 20 February 2025 • 2 min read
Trustpilot
Loading page