Top 10 in the S&P 500 contribute one-third of total profits

With nearly two-thirds of S&P 500 companies having released their second-quarter earnings, consumer staples and materials sectors have reported year-on-year declines of 0.1% and 5%, respectively, based on FactSet data.

Overall, 52% of the companies that have announced results so far have experienced shrinking profit margins, according to Société Générale. Many firms are facing margin pressures despite rising revenues. Top 10 largest companies in the S&P 500 now contribute roughly one-third of the index’s total profits. Among sectors, technology and financials stand out with impressive annual earnings growth for the quarter—41% and 12.8%, respectively.

Strong 2Q earnings from major tech firms like Apple, Meta, and Microsoft, along with leading banks such as JPMorgan and Goldman Sachs, have bolstered the image of a thriving U.S. economy. Many U.S. companies are struggling with declining profits and heightened uncertainty. -Charts from FT.

Ozkan Ozkaynak