How are US companies performing amid market volatility?

Executives are expressing optimism for future earnings despite uncertainties, with profit guidance momentum at its highest level since 2021.

What factors are contributing to the current market volatility?

Concerns include AI euphoria facing a test, a shaky labor market, and persistent inflation threats from tariffs, which have led to a nearly 1.7% drop in the S&P 500 Index.

Home / Business and Economy / Profit Surge Defies Market Volatility as Earnings Optimism Grows

Profit Surge Defies Market Volatility as Earnings Optimism Grows

Q: What will Walmart and Target's earnings reports reveal about American consumers?

Investors will be closely watching to see how consumers are faring in President Trump's tariff regime, as consumer spending accounts for two-thirds of the US GDP.

14 Nov, 2025

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Summary

Profit guidance momentum at highest level since 2021
Executives express optimism for future earnings despite uncertainties
Retailers to report earnings, testing consumer resilience

Profit Surge Defies Market Volatility as Earnings Optimism Grows

As the US stock market faces a prolonged period of volatility, one pillar of the three-year bull market remains strong: corporate profits. According to the latest data, profit guidance momentum, a measure of the share of S&P 500 members that lifted their earnings outlooks compared to those that maintained or lowered views, has climbed to the highest level since 2021.

Executives are expressing optimism for future earnings despite a bevy of uncertainties, including the AI euphoria facing its first prolonged test, a shaky labor market, and the persistent threat of inflation from tariffs. This optimism will be put to the test next week as some of the world's biggest retailers, such as Walmart and Target, report their latest earnings figures. Investors will be closely watching to see how American consumers are faring in President Trump's tariff regime, as consumer spending accounts for roughly two-thirds of the country's GDP.