Analysis: U.S. Corporate Earnings Expectations End 23-Week Streak, Inflation and Interest Rate Risks Intensify

Odaily Seongyo Ilbo Report — As market concerns grow that rising inflation and interest rates will erode corporate profits, stock analysts have turned net pessimistic on the U.S. corporate earnings outlook for the first time in months. An index from Citigroup shows that the number of analysts downgrading corporate earnings expectations has exceeded the number upgrading them for the first time in 23 weeks, ending the longest streak of earnings estimate upgrades since September 2021. Morgan Stanley strategist Michael Wilson warned earlier this week that if stock valuations continue their recent downward momentum while further increases in energy prices prompt tighter monetary policy, the S&P 500 could face a decline of as much as 7%.