Wall Street raises corporate earnings expectations as indicators show growing optimism.

Jin10 data reported on October 17th that despite increasing concerns in the market about the fundamentals of the U.S. economy, with the belief that the AI boom may mask potential risks, Wall Street analysts have become increasingly optimistic about the earnings outlook for U.S. companies. According to data tracked by Yardeni Research, Wall Street analysts have continued to raise profit expectations in October, pushing the measure of net upward revisions as a proportion of total expected changes to its highest level in four years. The S&P 500 net earnings revision index (NERI) rose by 0.6 percentage points this month, marking five consecutive months of increases since hitting a 28-month low of -7.8% in May. The speed and magnitude of this rebound are also noteworthy. The surge over these five months is the largest single improvement for NERI since December 2020. NERI data shows that analysts are raising profit expectations more broadly, with upward revisions outnumbering downward revisions in 7 of the 11 zones, the most since August 2024, surpassing the 5 zones in August.