The end of the first quarter is approaching, and equity investors are in for a rude awakening as they prepare for earnings season, said Dan Nathan, principal at RiskReversal Advisors. "It seems like we entered this year, and the stock market got off to this great start, because I think people had downshifted their recession expectations to a soft or no landing.
Nathan said consensus estimates for tech stocks are elevated, even as those companies contend with a higher interest rate and inflationary environment. "All of those things are going to be headwinds to earnings. So at some point, it's my view that in the next few months or so, we're gonna have some major tech companies likely guide down," Nathan said. "They've been cutting jobs , they've been cutting costs ...