US Earnings Growth Projections Hold Steady Amid War

Wall Street expects 14% first-quarter earnings growth for the S&P 500 despite a 30% rise in oil prices. Analysts believe resilient performance will offset risks.

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Investors in the United States are expressing confidence that robust corporate earnings will sustain stock prices despite the market volatility triggered by the conflict in Iran. Although the S&P 500 has declined nearly 4% since the start of the war in February, first-quarter earnings growth estimates remain strong at 14%, according to LSEG data. This resilience suggests that major corporations have developed strategies to manage geopolitical instability and the resulting inflationary pressures.

A street sign for Wall Street is displayed near the New York Stock Exchange in New York City, June 28, 2021. REUTERS/Andrew Kelly/File Photo
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