S&P 500 First-Quarter Profits Rise 28% Year Over Year, Analysts Flag Potential Volatility Risks

S&P 500 profits rose 28% year over year in the first quarter, supporting a stronger outlook for stocks in the second half. According to NS3.AI, analysts said the earnings growth has improved expectations for the market’s performance later in the year. Analysts also cautioned that several factors could increase volatility, including rising costs tied to artificial intelligence, inflation pressures, the possibility of additional Federal Reserve rate hikes, and the impact of new initial public offerings entering the market.