S&P 500 is on dream run but there is 'extreme fear' in U.S. Stock Market, claims report. Is there a Wall Street crash soon?

U.S Stock Market's key index S&P 500 is down by three per cent from its record high and up by 110 points today. However, S&P 500 earnings have remained in the positive threshold. S&P 500 revenue growth is on track to reach over 8.4 per cent Y-o-Y in Quarter 3, 2025, the highest since third Quarter in 2022. However, "extreme fear" still remains in the market.


This figure reflects results from ~95% of companies that have already reported, combined with analyst estimates for those yet to report. If this holds, it would mark the 2nd consecutive quarterly improvement. The strength has been broad-based, with all 11 sectors reporting positive YoY revenue growth so far in Q3. This has been led by Information Technology, Health Care, and Communication Services, which are on track to post gains of +16.0%, +10.4%, and +10.0%, respectively. Corporate earnings growth is gaining momentum, The Kobeissi Letter posted on 'X'.



However, according to Fear and Greed Index data cited by The Kobeissi Letter shows the market sentiment remains in the "Extreme Fear" category. "Once again, this is NOT what you see before a crash," The Kobeissi Letter posted.


U.S. indexes embarked on a holiday-shortened week with solid gains, with gains in the "Magnificent Seven" group of artificial intelligence-related momentum stocks sending the tech-heavy Nasdaq up 2.7 per cent.


Third-quarter reporting season is drawing to a close. As of Friday, nearly 95 per cent of the companies in the S&P 500 have reported, 83 per cent of which delivered better than expected earnings. Analysts now expect third-quarter aggregate earnings growth of 14.7 per cent for constituents of the bellwether index, a significant improvement over the 8.8 per cent estimate on October 1, according to LSEG data.


Among the 11 major sectors of the S&P 500, communication services enjoyed the largest percentage gain. Consumer staples and energy stocks were lower.


FAQs


Q1. Which are top three indexes of U.S. Stock Market?

A1. Top three indexes of U.S. Stock Market are S&P 500, Nasdaq, and Dow Jones.


Q2. Is this week a holiday-shortened week?

A2. Yes. This week is a holiday-shortened week.