Wall Street has a higher chance of hitting earnings estimates: Jeremy Siegel

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Jeremy Siegel says earnings estimates on Wall Street have a higher chance of being met as recession risk eases

Corporate earnings estimates on Wall Street will likely to be matched despite the potential for higher interest rates, according to Wharton professor Jeremy Siegel. , Siegel said that the strength of recent payroll data is aiding a narrative that consumer spending could continue to inch higher, which also means that the central bank may need to tighten benchmark interest rates further.

However, the same events that could push the Fed to raise rates also push down the odds of a recession in the US, and that's exactly that type of relationship that could help earnings reach their estimates, Siegel said. Meanwhile, this has led to a"standoff" in the stock market as investors see the odds of more rate hikes rising alongside lower odds of a recession.

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