- S&P 500: Net profit margin for Q1 2026 stands at 13.4%, above the previous record of 13.2% in Q4 2025.
- Technology remains the clear leader: The IT sector reports margins of 29.1% vs 25.4% YoY, continuing to drive overall index profitability.
- Communication Services under pressure: Margins declined to 14.1% from 16.0% a year ago.
- Energy lags despite higher prices: The sector posts margins of 6.6%, well below its 5-year average of 9.6%, despite elevated oil and broader energy prices.
- Quarter-over-quarter improvement is not broad-based: Margins increased in five sectors, led by Utilities (15.1% vs 12.1% in Q4 2025), but declined in six sectors, particularly in Energy and Industrials. In Industrials, margins fell to 11.1% from 12.3% a year ago.
US500 (H1 interval)
Looking at the US500 chart, the contract is attempting to hold above the EMA200 on the hourly timeframe, with the 7,140 level acting as a key support zone. Notably, Wall Street continues to price in further improvement. Consensus forecasts for S&P 500 net margins stand at 14.1% in Q2, 14.6% in Q3, and 14.6% in Q4 2026. These assumptions appear relatively optimistic given the mixed signals coming from US consumer strength.

Source: xStation5

Source: FactSet

Source: FactSet
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