Impact of High Interest Rates on S&P Global
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: NASDAQ.COM
- Rate Impact on Business: Higher interest rates could pressure S&P Global's credit rating services, leading companies to issue less new debt in a high-cost environment, thereby reducing demand for its credit rating services and impacting short-term profit growth.
- Subscription Services Benefit: Despite challenges in credit ratings, the high-rate environment will drive increased demand for market intelligence and commodity insights services, especially as market volatility rises, with asset-linked fees from S&P Dow Jones Indices also expected to increase.
- New Business Development: S&P Global is launching new services to price and evaluate illiquid private assets, which are anticipated to thrive amid heightened market uncertainty, further enhancing the company's competitive position.
- Long-Term Investment Value: Despite pressures from AI competition and high rates, S&P Global's stock is still viewed as a solid long-term investment, with expected EPS growth of 10% and 13% in 2026 and 2027, respectively, indicating future growth potential.
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Analyst Views on SPGI
Wall Street analysts forecast SPGI stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 400.160
Low
546.00
Averages
617.77
High
675.00
Current: 400.160
Low
546.00
Averages
617.77
High
675.00
About SPGI
S&P Global Inc. provides essential intelligence. Its operations consist of five businesses: S&P Global Market Intelligence (Market Intelligence), S&P Global Ratings (Ratings), S&P Global Commodity Insights (Commodity Insights), S&P Global Mobility (Mobility) and S&P Dow Jones Indices (Indices). Market Intelligence is a global provider of multi-asset-class data and analytics integrated with purpose-built workflow solutions. Ratings is an independent provider of credit ratings, research, and analytics, offering investors and other market participants information, ratings and benchmarks. Commodity Insights is an independent provider of information and benchmark prices for the commodity and energy markets. Mobility is a provider of solutions serving the full automotive value chain, including vehicle manufacturers and retailers. Indices is a global index provider that maintains a variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
S&P Global: Analysis of Interest Rate Impact
- Stable Dividend Growth: S&P Global has raised its dividend for 53 consecutive years, establishing itself as a Dividend King, which reflects its strong cash flow and profitability, maintaining shareholder returns despite rising interest rate challenges.
- Shifting Market Demand: Higher interest rates typically throttle economic growth and increase corporate borrowing costs, reducing demand for S&P Global's credit rating services; however, this also boosts demand for its market intelligence and commodity insights services.
- New Business Expansion: S&P Global is launching new services for pricing and evaluating illiquid private assets to adapt to market volatility, a strategy that could thrive in a more chaotic market environment.
- Optimistic Earnings Outlook: Despite AI competition and interest rate pressures, analysts expect S&P Global's EPS to rise by 10% in 2026 and 13% in 2027, indicating that its long-term investment value remains intact.
See More
Impact of High Interest Rates on S&P Global
- Rate Impact on Business: Higher interest rates could pressure S&P Global's credit rating services, leading companies to issue less new debt in a high-cost environment, thereby reducing demand for its credit rating services and impacting short-term profit growth.
- Subscription Services Benefit: Despite challenges in credit ratings, the high-rate environment will drive increased demand for market intelligence and commodity insights services, especially as market volatility rises, with asset-linked fees from S&P Dow Jones Indices also expected to increase.
- New Business Development: S&P Global is launching new services to price and evaluate illiquid private assets, which are anticipated to thrive amid heightened market uncertainty, further enhancing the company's competitive position.
- Long-Term Investment Value: Despite pressures from AI competition and high rates, S&P Global's stock is still viewed as a solid long-term investment, with expected EPS growth of 10% and 13% in 2026 and 2027, respectively, indicating future growth potential.
See More
Canadian Oil Sands Greenhouse Gas Intensity Declines for 13th Year
- GHG Intensity Decline: According to S&P Global Energy, the greenhouse gas intensity of Canadian oil sands production decreased by 2% to 59 kgCO2e/bbl in 2025, marking the 13th consecutive year of decline, which highlights the industry's ongoing commitment to emissions reduction.
- Established Long-Term Trend: Since 2009, the average GHG intensity has dropped by 31%, equating to nearly 27 kgCO2e per barrel of marketable product, reflecting the industry's continuous optimization efforts and suggesting that this trend is likely to persist.
- Technological Advancements: The analysis indicates that improvements in mining operations, such as fleet optimization, waste-heat integration, predictive maintenance, and reduced maintenance turnaround times, have significantly contributed to lowering emissions intensity, enhancing capital efficiency across the sector.
- Absolute Emissions Increase: While GHG intensity continues to decline, absolute emissions from oil sands have risen by 2% between 2024 and 2025 due to increased production, indicating that without the application of carbon capture, utilization, and storage (CCUS), future absolute emissions growth may continue to rise.
See More
Canadian Oil Sands Greenhouse Gas Intensity Declines for 13th Year
- GHG Intensity Decline: According to S&P Global Energy, the greenhouse gas intensity of Canadian oil sands production decreased by 2% to 59 kgCO2e per barrel in 2025, marking a continuous improvement trend since 2009, despite absolute emissions still rising.
- Established Long-Term Trend: Since 2009, the average GHG intensity of oil sands production has declined by 31%, indicating that optimization efforts to enhance capital efficiency from existing facilities have played a critical role, with expectations for this trend to continue.
- Innovation Driving Efficiency: The analysis highlights significant gains from improvements in mining operations, including better fleet optimization, waste-heat integration, and predictive maintenance, which have collectively shortened maintenance turnaround times and enhanced overall industry efficiency.
- Production Growth vs. Emissions: Although absolute emissions from oil sands rose by 2% between 2024 and 2025, the increase in production volume has diluted emissions intensity, suggesting that future emissions growth may accelerate without the application of carbon capture, utilization, and storage (CCUS) technologies.
See More
Chip Stocks Plummet, Market Seeks Safe Havens Amid AI Boom
- Chip Stock Decline: Micron and other chip manufacturers experienced significant declines as the AI infrastructure boom cooled, with Micron recording one of its largest one-day drops in recent years, prompting investors to seek safer investments and impacting overall market sentiment.
- Market Reaction: South Korea's market faced one of its worst days on record due to high exposure to memory stocks, while the Nasdaq Composite fell over 2% as concerns about tech stocks intensified, indicating a growing wariness among investors.
- Fed Developments: Federal Reserve Chairman Kevin Warsh is in the process of selecting a new Atlanta Fed President, which could influence future monetary policy directions amid current economic uncertainties, drawing significant market attention.
- Cerebras Earnings Impact: Despite Cerebras reporting a 92% year-over-year revenue increase in its first earnings report, weak guidance on gross margins led to a 10% drop in premarket trading, reflecting investor caution towards newly public companies.
See More
S&P 500 Index Component Changes Announced
- Component Additions: On June 29, 2026, Honeywell Aerospace (HONA) will be added to both the S&P 100 and S&P 500 indices, indicating further recognition in the industrial sector, which is expected to enhance its market liquidity and investor interest.
- Component Deletions: On the same day, Conagra Brands (CAG) will be removed from the S&P 500 index, reflecting a reassessment of its future growth potential, which may put downward pressure on its stock price in the short term.
- Small Cap Adjustments: On June 30, 2026, Grid Dynamics Holdings (GDYN) will be removed from the S&P SmallCap 600 index, while National Health Investors (NHI) will be added, indicating a shift in market preference towards the real estate sector, potentially impacting asset allocation strategies for related investors.
- Mid Cap Changes: On July 1, 2026, Toast (TOST) and IES Holdings (IESC) will be added and removed from the S&P MidCap 400 index respectively, reflecting differing market expectations for performance in the financial and industrial sectors, which may influence investor decision-making.
See More
S&P Global: Analysis of Interest Rate Impact
- Stable Dividend Growth: S&P Global has raised its dividend for 53 consecutive years, establishing itself as a Dividend King, which reflects its strong cash flow and profitability, maintaining shareholder returns despite rising interest rate challenges.
- Shifting Market Demand: Higher interest rates typically throttle economic growth and increase corporate borrowing costs, reducing demand for S&P Global's credit rating services; however, this also boosts demand for its market intelligence and commodity insights services.
- New Business Expansion: S&P Global is launching new services for pricing and evaluating illiquid private assets to adapt to market volatility, a strategy that could thrive in a more chaotic market environment.
- Optimistic Earnings Outlook: Despite AI competition and interest rate pressures, analysts expect S&P Global's EPS to rise by 10% in 2026 and 13% in 2027, indicating that its long-term investment value remains intact.
See More
Impact of High Interest Rates on S&P Global
- Rate Impact on Business: Higher interest rates could pressure S&P Global's credit rating services, leading companies to issue less new debt in a high-cost environment, thereby reducing demand for its credit rating services and impacting short-term profit growth.
- Subscription Services Benefit: Despite challenges in credit ratings, the high-rate environment will drive increased demand for market intelligence and commodity insights services, especially as market volatility rises, with asset-linked fees from S&P Dow Jones Indices also expected to increase.
- New Business Development: S&P Global is launching new services to price and evaluate illiquid private assets, which are anticipated to thrive amid heightened market uncertainty, further enhancing the company's competitive position.
- Long-Term Investment Value: Despite pressures from AI competition and high rates, S&P Global's stock is still viewed as a solid long-term investment, with expected EPS growth of 10% and 13% in 2026 and 2027, respectively, indicating future growth potential.
See More
Canadian Oil Sands Greenhouse Gas Intensity Declines for 13th Year
- GHG Intensity Decline: According to S&P Global Energy, the greenhouse gas intensity of Canadian oil sands production decreased by 2% to 59 kgCO2e/bbl in 2025, marking the 13th consecutive year of decline, which highlights the industry's ongoing commitment to emissions reduction.
- Established Long-Term Trend: Since 2009, the average GHG intensity has dropped by 31%, equating to nearly 27 kgCO2e per barrel of marketable product, reflecting the industry's continuous optimization efforts and suggesting that this trend is likely to persist.
- Technological Advancements: The analysis indicates that improvements in mining operations, such as fleet optimization, waste-heat integration, predictive maintenance, and reduced maintenance turnaround times, have significantly contributed to lowering emissions intensity, enhancing capital efficiency across the sector.
- Absolute Emissions Increase: While GHG intensity continues to decline, absolute emissions from oil sands have risen by 2% between 2024 and 2025 due to increased production, indicating that without the application of carbon capture, utilization, and storage (CCUS), future absolute emissions growth may continue to rise.
See More
Canadian Oil Sands Greenhouse Gas Intensity Declines for 13th Year
- GHG Intensity Decline: According to S&P Global Energy, the greenhouse gas intensity of Canadian oil sands production decreased by 2% to 59 kgCO2e per barrel in 2025, marking a continuous improvement trend since 2009, despite absolute emissions still rising.
- Established Long-Term Trend: Since 2009, the average GHG intensity of oil sands production has declined by 31%, indicating that optimization efforts to enhance capital efficiency from existing facilities have played a critical role, with expectations for this trend to continue.
- Innovation Driving Efficiency: The analysis highlights significant gains from improvements in mining operations, including better fleet optimization, waste-heat integration, and predictive maintenance, which have collectively shortened maintenance turnaround times and enhanced overall industry efficiency.
- Production Growth vs. Emissions: Although absolute emissions from oil sands rose by 2% between 2024 and 2025, the increase in production volume has diluted emissions intensity, suggesting that future emissions growth may accelerate without the application of carbon capture, utilization, and storage (CCUS) technologies.
See More
Chip Stocks Plummet, Market Seeks Safe Havens Amid AI Boom
- Chip Stock Decline: Micron and other chip manufacturers experienced significant declines as the AI infrastructure boom cooled, with Micron recording one of its largest one-day drops in recent years, prompting investors to seek safer investments and impacting overall market sentiment.
- Market Reaction: South Korea's market faced one of its worst days on record due to high exposure to memory stocks, while the Nasdaq Composite fell over 2% as concerns about tech stocks intensified, indicating a growing wariness among investors.
- Fed Developments: Federal Reserve Chairman Kevin Warsh is in the process of selecting a new Atlanta Fed President, which could influence future monetary policy directions amid current economic uncertainties, drawing significant market attention.
- Cerebras Earnings Impact: Despite Cerebras reporting a 92% year-over-year revenue increase in its first earnings report, weak guidance on gross margins led to a 10% drop in premarket trading, reflecting investor caution towards newly public companies.
See More
S&P 500 Index Component Changes Announced
- Component Additions: On June 29, 2026, Honeywell Aerospace (HONA) will be added to both the S&P 100 and S&P 500 indices, indicating further recognition in the industrial sector, which is expected to enhance its market liquidity and investor interest.
- Component Deletions: On the same day, Conagra Brands (CAG) will be removed from the S&P 500 index, reflecting a reassessment of its future growth potential, which may put downward pressure on its stock price in the short term.
- Small Cap Adjustments: On June 30, 2026, Grid Dynamics Holdings (GDYN) will be removed from the S&P SmallCap 600 index, while National Health Investors (NHI) will be added, indicating a shift in market preference towards the real estate sector, potentially impacting asset allocation strategies for related investors.
- Mid Cap Changes: On July 1, 2026, Toast (TOST) and IES Holdings (IESC) will be added and removed from the S&P MidCap 400 index respectively, reflecting differing market expectations for performance in the financial and industrial sectors, which may influence investor decision-making.
See More
