It can be said that the entire growth of the American indices this year, apart from the theme of the artificial intelligence revolution, was due to expectations that from the second quarter of 2024 the financial results will improve significantly.
However, this is not yet visible in the data. Of the 377 S&P 500 indices that reported last quarter's results, they beat forecasts by roughly the same rate as the average over the past year.
However, the scale of better results is much lower than the average of the previous few years. In addition, it is significantly worse in terms of income.
It should be recalled that, according to the forecasts of Wall Street analysts, it was only now that the results were expected to improve significantly. There are many excuses for the current decline in the stock market, but this element seems to be one of the most important.
Anyone who followed these results closely could see a widening gap between analysts' expectations and actual performance. It can be said that basically the current recessions are just an adjustment to reality.
