Big Tech Drives S&P 500 to 15-Year Profit Record

The biggest U.S. companies are making more money than they have in over 15 years, but there's a catch — just three tech giants are doing most of the heavy lifting.

The S&P 500 (a group of America's 500 largest companies) is showing its best profit margins (how much money companies keep after paying all expenses) in more than a decade. However, this impressive performance is mostly thanks to Amazon, Google, and Meta (Facebook's parent company).

Key facts about these record profits: • Amazon's profits jumped 77% in the first three months of 2026 • Tech companies are making huge gains while consumer businesses struggle • The Iran war is hurting companies like Starbucks, McDonald's, and Disney • Financial companies, industrial firms, and utilities are also doing well

This situation shows a growing gap in the stock market. While Big Tech thrives, many consumer-focused companies face challenges from global conflicts and changing customer habits. Companies that sell directly to consumers are having a harder time maintaining their profits.

Why this matters: When just a few companies drive most of the market's success, it can hide problems elsewhere. Investors should understand that the overall market's strong performance doesn't mean every company is doing well. The current profit boom is real, but it's not evenly distributed across all businesses.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/s-p-500-profits-havent-been-this-rich-in-at-least-15-years-but-theres-more-to-the-story-c3ccaf3b?mod=mw_rss_topstories