o Profits of U.S. companies have been rising most strongly in recent years, and corporate executives expect this favorable trend to continue for the foreseeable future.
* According to the U.S. BEA, corporate profits in the second quarter of 2026 were $4.827 trillion on an annualized basis, up about 9% from $4.427 trillion in the first quarter.
o Target, J.M. Smucker, Deere, and other companies across consumer goods, distribution, and industrial goods are seeing improved sales and profits.
-> This is not just a phenomenon limited to AI companies or big tech; corporate profits are improving across the entire U.S. economy.
o American consumers continue to spend on a variety of goods, including appliances, toys, and clothing.
- This virtuous cycle is being maintained.
This article seems to be a service intended to dispel concerns about the Fed's interest rate hike announcement,
but if corporate profits in the U.S. are rising strongly, it could serve as a counterargument to the growing debate in the market about the "AI bubble."
In other words, it may be possible to pass on the continuous upward pressure on costs due to large-scale investments related to AI to consumers and the market!!!
▶ Source: https://www.wsj.com/business/earnings/corporate-profit-america-44836dc6
