Worst-case scenario worries are back for stocks after Fed move falls flat

  • 📰 The Straits Times
  • ⏱ Reading Time:
  • 62 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 63%

Business News News

Business Business Latest News,Business Business Headlines

NEW YORK (BLOOMBERG) - They bought the rumour, sold the news, and now investors are back to their real obsession: imagining what a recession looks like in equities from the coronavirus. It's not a pretty picture.. Read more at straitstimes.com.

NEW YORK - They bought the rumour, sold the news, and now investors are back to their real obsession: imagining what a recession looks like in equities from the coronavirus. It's not a pretty picture.

At the heart of the problem are feedback loops, many of them emanating from markets themselves. Headlines hit, shares tank, nerves fray, travel is canceled. Shares fall more. And while dynamics like those are always what derail rallies, it makes the challenge of visualizing the future no easier or less urgent.

Earnings among S&P 500 companies are projected by analysts to rise about 7 per cent in 2020, but few investors expect that to happen. A number of companies have already warned the virus will have a material impact on their bottom lines. Not many have specified what. Analysts at Citigroup cut their full-year earnings forecast, citing supply chain issues, demand weakness and lower commodity prices. US companies will see earnings of US$164.25 in 2020, down from a previous estimate of US$174.25, according to Tobias Levkovich, chief US equity strategist at the bank.

It's the latest in a string of pronouncement from Wall Street strategists, who have rushed to map out potential scenarios. Strategists at Goldman Sachs last week predicted zero profit growth for the year, saying that a looming recession could mean the S&P ends the year down 28 per cent from its recent February high.

 

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

 /  🏆 8. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

European stocks boosted by Fed rate cutPARIS: European stock indices were solidly higher on Tuesday (Mar 3) following a surprise rate cut by the US Federal Reserve, but off their peaks ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

US stocks tumble amid skepticism of Fed rate cutsNEW YORK: Wall Street stocks finished sharply lower on Tuesday (Mar 3), reflecting skepticism at a surprise Federal Reserve interest rate cut ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »