QVMM - S&P 500 Earnings: Large-Cap Growth Corrects As High-Yield Credit Spreads Tighten
2024-07-22 03:40:00 ET
Summary
- Corporate high-yield credit spreads tightened again this week to +309, down from +323 on July 5th, +324 on June 21, and +342 on April 19 ’24.
- Gradually tightening corporate high-yield credit spreads imply a US economy that remains in reasonably good shape.
- If high-yield credit spreads tighten further from here, let’s say below 3%, it could mean that US economic growth is poised to accelerate.
As of Thursday night, July 18, 2024, only 70 companies had reported Q2 ’24 earnings results, so the sample size is still a little small to draw larger conclusions about S&P 500 earnings for Q2 ’24....
S&P 500 Earnings: Large-Cap Growth Corrects As High-Yield Credit Spreads Tighten