S&P 500 Trailing 4-Quarter ROE The S&P 500’s LTM return on equity has climbed to 21.1%, signaling strong profitability among S&P 500 companies and offering a positive outlook for investors. Image: Goldman Sachs Global Investment Research
Citi Economic Surprise Index vs. 10-Year U.S. Treasury Yield Economic momentum-reflected in growth data and surprises relative to forecasts-continues to be the main force driving U.S. Treasury yields. Image: Paulsen Perspectives
Wage Growth vs. Fed Funds Rate When wage growth lags behind the fed funds rate, it is interpreted as a sign that monetary policy is restrictive, as borrowing costs exceed the pace of income growth, potentially dampening consumer spending and economic activity. Image: Yahoo Finance
Buyback Announcements In 2025, U.S. companies are announcing record levels of share buybacks, aiming to return cash to shareholders, stabilize stock prices, and enhance EPS as they navigate economic and policy uncertainty. Image: Bloomberg
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
U.S. Core PCE Inflation Forecasts Goldman Sachs forecasts that U.S. core PCE inflation will reach 3.8% by December 2025. Although inflation is projected to stay above the Fed’s 2% target, wage pressures are cooling and the labor market remains robust. Image: Goldman Sachs Global Investment Research
World Technology vs. World Ex. TMT Continuous technological innovation, resilience, and the expanding societal dependence on technology strongly underpin the tech sector’s prospects for sustained market outperformance. Image: Goldman Sachs Global Investment Research
S&P 500 Equity Risk Premium With the U.S. equity risk premium at low levels, investors face a difficult landscape in which the risks of equity investments may not be sufficiently rewarded. Image: BCA Research
U.S. CEO Confidence Index The sharp decline in U.S. CEO optimism in 2025 is largely attributed to new tariffs, trade policy uncertainty, inflation, and unpredictable government actions, reversing the post-election optimism. Image: J.P. Morgan
Mentions of AI During Earnings Calls Although many S&P 500 companies discuss AI during their earnings calls, suggesting a major technological shift, its adoption and impact have yet to become widespread across all major corporations. Image: Goldman Sachs Global Investment Research
Bullish Percent Index vs. S&P 500 Index The S&P 500’s rally has reversed extreme bearish sentiment, pushing the number of stocks on bullish buy signals toward 70% and confirming a significant, broad-based improvement in market breadth. Image: Real Investment Advice