LIVE MARKETS-Earnings growth and Fed cuts, an unusual mix
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com.
EARNINGS GROWTH AND FED CUTS - AN UNUSUAL MIX
Bets on Federal Reserve rate cuts are rising, but Societe Generale point out the level of cuts now expected by markets has never occurred without a double-digit decline in U.S. profits.
We certainly don't have that at the moment. This U.S. earnings season is showing strong growth - earnings rising by 13.2% according to LSEG data - and markets are pricing at least two, if not three Fed rate cuts by year end.
So what's going on?
Soc Gen say: "either market expectations for cuts are, once again wide of the mark, or as we have been pointing out in numerous charts recently, U.S. corporate sector profitability is far less rosy than headline numbers suggest."
(Alun John)
*****
EARLIER LIVE MARKETS POSTS
UKRAINE PEACE COULD BE A DOUBLE-EDGED SWORD FOR THE EURO CLICK HERE
STOXX UP, VOLATILITY DOWN CLICK HERE
EUROPE BEFORE THE BELL, CATCHING BREATH CLICK HERE
MORNING BID: BITCOIN JOINS THE RISK-ON PARTY CLICK HERE
Related Articles
What Is Worldcoin? Why Did WLD Surge Suddenly, and What’s Next?
Worldcoin is evolving from a “hype token” into a foundational layer for global identity. Its fusion of biometrics, blockchain, and financial inclusion has earned growing recognition from users and institutions. If it can overcome technical hurdles, launch real-world payment use cases, and stabilize
Oracle Q1 FY2026 Earnings: Cloud Surge and Record RPO Fuel AI Optimism
TradingKey - Oracle Corporation (NYSE: ORCL) posted mixed Q1 FY2026 results, with total revenue and adjusted EPS slightly below consensus amid a shift to cloud services, but cloud revenue beat expectations with robust 28% growth. A massive RPO backlog of $455 billion, up 359% YoY
Oracle’s FY2026 Q1 Preview: Will OpenAI Contract Spark a Broadcom-Like Stock Surge?
TradingKey - As analysts raise targets and expectations, could Oracle’s stock replicate the post-earnings rally seen at Broadcom following its OpenAI-related contract announcement?Fed to Cut Rates: All Asset Prices Up!
TradingKey - The Federal Reserve is almost certain to restart its interest rate cut cycle on 17 September this year. After in-depth research, we have concluded that cryptocurrencies, the broader U.S. stock market, and short-term U.S. Treasury bonds will all go up.
ASML Q2 FY2025 Earnings Review: Strong Growth and High-NA EUV Breakthrough Shadowed by 2026 Uncertainty
ASML Holding N.V. (NASDAQ: ASML) released its Q2 FY2025 earnings on July 16, 2025, exceeding market expectations with robust net sales and net bookings, though the stock fell around 10% due to cautious guidance for 2026 amid geopolitical uncertainties.
