S&P 500 Recession Mentions Drop to 16 in Second Quarter Earnings Calls
Corporate America has shifted its outlook on a potential recession. Key points include:
- The number of S&P 500 companies mentioning "recession" during Q2 earnings calls fell to 16 from 124 in Q1, based on FactSet data.
- This is the lowest mention rate since Q4 2021 and significantly below the 10-year average of 61.
- Concerns about economic impact from President Trump’s trade tariffs remain, with the average U.S. tariff rate reaching 20.1%, the highest since the 1910s.
- Despite these tariffs, the S&P 500 has increased by 28% since early April.
- Bitcoin has surged 62% over four months, rising to $122,000 from approximately $75,000.
- Over 80% of S&P 500 companies have reported Q2 earnings, with more than 80% exceeding earnings expectations and 79% surpassing revenue forecasts, marking the strongest performance in four years.
