This summer, analysts thought S&P 500 companies’ fourth-quarter earnings would rise. Now they think earnings will fall.
Markets have had a good run in recent weeks, but some investors expect unimpressive earnings to send stocks lower again.
U.S. stocks have mounted a turnaround lately amid expectations the Federal Reserve could slow the pace of its rate increases as soon as December. That has been a welcome change, since stocks have been under pressure throughout the year thanks to roaring inflation and the Fed’s aggressive rate-raising campaign to try to curb the rising prices. The S&P 500 is down 16% this year, but up 13% from Oct. 12, its lowest close of 2022.
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