Corporate Profits Defy Tariff Fears with 11% Q3 Surge
Median profits across Russell 3000 companies jumped 11% year-over-year in Q3, nearly doubling Q2's 6% growth according to Morgan Stanley data. Six of the S&P 500's eleven sectors posted earnings gains—a stark improvement from last quarter when only financials and big tech stayed afloat.
Deutsche Bank analysis confirms the rebound spans multiple industries, contradicting expectations that Trump-era tariffs WOULD cripple margins. "Corporate adaptability has absorbed tariff shocks," noted SLC Management's Dec Mullarkey, citing resilient consumer spending as the linchpin.
Goldman Sachs strategist David Kostin highlights unprecedented earnings beats: "This surprise frequency rivals only the 2020-21 COVID recovery period." With Q4 profit projections rising to 7.5%, the data paints a picture of structural resilience—one that could buoy risk assets from equities to cryptocurrencies.
