Thornburg Investment Management Co-Head of Investments Ben Kirby in The Wall Street Journal

Stocks Are on the Rise, but Earnings Could Drag Them Down Again

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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