Inflation, recession and earnings among factors to drive U.S. stocks in 2023

  • 📰 Reuters
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 97%

Australia News News

Australia Australia Latest News,Australia Australia Headlines

U.S. stock investors could not be more eager to turn the page on 2022, a brutal year dominated by market-punishing Federal Reserve rate hikes designed to tamp down the steepest inflation in 40 years.

Inflation, and the Fed's degree of aggressiveness in trying to contain it, will likely remain a critical factor driving equity performance as 2023 gets under way. But investors will also be watching for fallout from higher interest rates, including how tighter monetary policy ripples through the economy and whether it makes other assets more competitive with stocks.RECESSION OR SOFT LANDING?

Perhaps the biggest question that will sway stocks as the new year begins is whether the economy is headed for a recession,If a recession starts next year, stocks could be set for another slide: A bear market has never bottomed before the beginning of a recession, historic data showed. Recessions tend to hit stocks hard, with the S&P 500 falling an average of 29% during recessions since World War Two, according to Truist Advisory Services. Those declines, however, have usually been followed by a strong rebound.Investors are also concerned that corporate earnings estimates may not have fully factored in a potential slowdown, leaving more downside for stocks.

Consensus analyst estimates project S&P 500 earnings to rise 4.4% in 2023, according to Refinitiv IBES. Yet earnings fall by an average annual rate of 24% during recessions, according to Ned Davis Research.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in AU
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

L' idel n'existe pas ;la recession y est ;ses taux differencies montrent comment l'ensemble des mutations arrivent a imposer une transformation en termes monetaires qui demande la realisation de sys/ axes sur une justice reel..

All this NGO’s Biden brought.. none of these the NGO’s were even discussed before his enemy C student hack became PINO

Biden’s policies are ruining the economy. Biden’s been disastrous for the stock market.

Australia Australia Latest News, Australia Australia Headlines