S&P 500 Quarterly Net Profit Margin (Ex. Financials & Energy) Consensus forecasts indicate that S&P 500 profit margins will remain near record highs in 2025, supported by steady earnings growth and strong economic expansion. Image: Goldman Sachs Global Investment Research
U.S. Net Margin Debt So far, U.S. margin debt as a share of market capitalization remains elevated, which reflects ongoing confidence in the market. Image: Goldman Sachs Global Investment Research
Margin Debt and MoM Change The recent three-month, $90 billion decline in margin debt is not characteristic of what is typically observed at market tops, where margin debt tends to rise or peak amid speculative excess. Image: Fundstrat Global Advisors, LLC
Profit Margins within S&P 500 Names Profit margins in the S&P 500 are elevated. As AI adoption accelerates, it is likely to have a transformative impact on profit margins across industries, with the tech sector leading this trend. Image: Goldman Sachs Global Investment Research
S&P 500 – Margin Debt Expansion vs. Contraction A decline in margin debt has historically signaled impending market turbulence, as margin debt levels often reflect investor confidence and risk appetite. Image: Topdown Charts
Consensus Estimated Margin Growth Slower economic growth and rising costs are expected to lead to a decline in S&P 500 margin estimates later this year. Image: Goldman Sachs Global Investment Research
S&P 500 Profit Margin – Operating Earnings/Sales Structural changes in the market—such as the rise of high-margin sectors like technology, economies of scale, and favorable financial conditions for large-cap firms—have driven elevated profit margins in the S&P 500. Image: J.P. Morgan Asset Management
S&P 500 vs. Margin Debt Margin debt boosts market gains as investors leverage their positions to increase buying power. A reliable warning sign for reducing portfolio risk occurs when margin balances drop below the 12-month moving average. Image: Real Investment Advice
U.S. Stock Market – Margin Debt and Free Cash Balances The record surge in margin debt reflects heightened risk-taking among investors. If retail enthusiasm persists, this trend may continue, but elevated margin debt levels could amplify market volatility. Image: Real Investment Advice
S&P 500 Profit Margin Profit margin growth in the S&P 500 is broadening, extending beyond mega-caps and the tech sector. This trend is expected to continue in 2025, indicating a healthier and more diverse market outlook. Image: Societe Generale Cross Asset Research
S&P 500 Quarterly Operating Margin S&P 500 aggregate margins have reached a nine-quarter high, with further expansion expected in upcoming quarters, signaling a potentially positive profitability outlook. Image: Deutsche Bank Asset Allocation