S&P 500 Revenues & Earnings At Record Highs

Our weekly forward metrics for S&P 500 revenues, earnings, and the profit margin continue to accurately track their quarterly counterparts (chart below). Revenues and earnings both rose to record highs during Q2, up 12.1% and 9.5% y/y, respectively. Q2 earnings per share rose to a record $231. S&P 500's profit margin was 13.4% during Q2, near recent record highs.

So why is the S&P 500 down 14.9% ytd? The index's forward P/E plunged on investors' fears that tighter monetary policy aimed at bringing inflation down will also cause a recession.