S&P 500 Hits All-Time High Amid Earnings Growth

The S&P 500 index reached a new all-time high, marking its 27th record peak and a third consecutive week of gains. This growth followed a 31% increase in second-quarter earnings and easing inflation data. Consensus profit growth for the index in 2024 rose to 27%, an upgrade described as unprecedented outside of post-recession recoveries.

Consumer data showed mixed results as retail sales dipped in July. However, discretionary spending at bars and restaurants rose by 0.5%, suggesting underlying strength in consumer behavior.

Market gains occurred alongside volatility in other sectors. Oil prices and long-term interest rates increased following the failure of negotiations between the Government of Iran and the administration of Donald Trump.