Until the February 17ththe expectations of Wall Street for profit growth S&P in 2023 they had fallen to 1.6% from the 4.4% expected on January 1, according to Refinitiv.
Inquiries by Reuters also revealed that more than 70% of the specialists indicated that there high probability of one US equity market correction in the next three months. The remaining percentage indicated that the remaining four said that the movement will be downward.
How Much Will Rates Impact the S&P 500?
More of three quarters of the majority they said their end-of-year forecasts do not depend That the Federal Reserve of the United States, or other central banks, cut interest rates within 12 months.
“The chances of rates going up and stay (higher) for a longer time they have increased. That also increases the likelihood that the Fed will make some sort of mistake, which would weigh on the multiples,” he said. Sameer Samana, Chief Global Market Strategist of the Wells Fargo Investment Institute from Charlotte, North Carolina.
Terry Sandvenstrategist head of equities of US Bank Wealth Management in Minneapolis, go “significant headwinds for equities”as the elevated inflationhe rate hike cycle of the Federal Reserve and the lower earnings expectations by 2023.
Therefore, he said that it is “difficult to foresee a significant uptrend in equities”but still stated that “the sentiment is increasingly constructive”.
However, although the goal of Sandven for him S&P 500 at the end of the year does not depend on interest rate cuts, he stated that “it does depend on the moderation of inflation and the improvement of the visibility of profits”.
Source: Ambito
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