S&P Global is experiencing both tailwinds and headwinds from a higher-for-longer Federal Reserve policy. Higher interest rates discourage corporate debt issuance, reducing demand for its credit rating services, which are a key profit driver. However, market volatility boosts demand for its subscription-based market intelligence and commodity insights, while its S&P Dow Jones Indices division benefits from increased trading activity. The company is also expanding into private credit and alternative asset valuation, which could thrive in the current environment. Despite a more than 20% year-to-date stock decline, analysts expect earnings per share to rise 10% in 2026 and 13% in 2027, with the stock trading at 20 times forward earnings.
S&P Global IncHigher interest rates reduce demand for credit rating services but boost demand for market intelligence and indices; net effect mixed.
NVIDIA Corporation