Profits Without End: How High Profit Margins Are Fueling the Stock Market's Rally The stock market's sustained upward momentum has left many investors and analysts puzzled.
A key factor driving this persistence is the record breaking profit margins reported by S&P 500 companies. According to FactSet data, these companies' blended net profit margin stands at a record 16.
9% for the second quarter, surpassing the five year average of 12. 4%. Alphabet and Amazon are largely responsible for this surge, with their operating margins hitting 34% and 13. 7%, respectively.