S&P 500 Q1 net profit margin just hit 13.4%. That's a new high going back to 2009, topping last quarter's 13.2% record. 🤯
> Tech leading the charge: 29.1% margin vs 25.4% a year ago.
> Energy getting crushed: 6.6% vs a 9.6% five-year average.
> Comms Services slipping too: 14.1% vs 16.0% YoY.
And analysts aren't done. Estimated margins for Q2-Q4: 14.1%, 14.6%, 14.6%. The index is printing margins we've never seen and the street says it only gets better from here.
Either Tech found a gear nobody knew existed with AI or the margin compression trade is going to be violent when it arrives.