The article discusses the current trend of the stock market, highlighting the importance of earnings growth in determining stock performance. Three key points from the article are:
1. The direction of profits is crucial in influencing whether stocks go up or down, with the overall profits and margins remaining at near record levels, particularly in the technology sector.
2. Tech stocks have been leading in earnings growth, with companies like Nvidia and Broadcom showing significant profit increases in recent years, driving the market upwards.
3. While there is anticipation of a slowdown in earnings growth for megacap tech companies in 2025, the hope of a rotation into other stocks is met with skepticism as these tech giants still boast impressive profit gains.
Editorial content by Harper Eastwood
