Q4 Earnings Season Kicks Off Strong

Banking Sector Performance - Major banks including JPMorgan, Wells Fargo, Citigroup, and Goldman Sachs reported better-than-expected Q4 results, with positive guidance for 2025 [2] - The operating environment for banks is expected to improve due to a steepening yield curve and potential regulatory easing [3] - Q4 earnings for the Finance sector showed a +23.7% increase in earnings and +10.7% higher revenues, with 83.3% of companies beating revenue estimates [4] - Loan demand remains weak, but investment banking and capital markets businesses saw significant growth, with investment banking revenues up over +20% [5] - JPMorgan's Q4 earnings increased by +15.7%, Wells Fargo by +0.5%, Citigroup by +44.2%, and Goldman Sachs by +104.7% [6] Tech Sector Growth - The Tech sector is expected to continue its strong growth trajectory, with Q4 earnings projected to increase by +14.7% and revenues by +10.1% [7] - This follows a +22.6% earnings growth and +11% revenue growth in Q3 2024 [8] - The Tech sector's earnings outlook is steadily improving, with positive revisions for both Q4 and full-year 2025 [10] Overall Earnings Outlook - The S&P 500 index is expected to see +8% earnings growth in Q4, driven by strong performances from major banks [6] - Double-digit earnings growth is expected for the next two years, with 10 out of 16 Zacks sectors projected to achieve double-digit growth in 2025 [15][16] - Unlike previous years, the 2025 earnings growth will not rely solely on the Mag 7 group, indicating broader sector participation [16]