Stock Market Crash: 'Recession is a Done Deal,' Will Destroy Profits

But as data continues to come out in the months ahead, Edwards says to pay attention to details beneath the headline numbers.

The number of jobs added in February was revised down from 326,000 to 248,000, and March's number was revised down from 236,000 to 165,000. March's gains were the smallest seen since December 2020, when the economy shed jobs, and were well below the 290,000 average over the last six months. Given his outlook that a recession is already underway, Edwards is bearish on corporate profit performance going forward, saying it has a"very, very long way to fall.

"Investors are cheering 'greedflation' at the micro company levels as profits do ok, but the macro implications for inflation and interest rates mean a deeper recession for longer," he wrote in an email to Insider."I think the recession will lead to a collapse in margins and profits and do a lot of damage."

Wilson sees the S&P 500 falling to somewhere between 3,000-3,300 in the months ahead before recovering to 3,900 by the end of the year. As the index currently sits around 4,135, a drop to 3,000 would represent 27% downside. In terms of his view on the labor market, Edwards has company in Ian Shepherdson, the chief economist at Pantheon Macroeconomics. He told Insider this week that the labor market would likely fall apart more quickly than investors realize, and that the lag effect of rate hikes and the credit crunch that ramped up in recent weeks means a recession is on our doorstep.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

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

Stock market today: Asia up, Europe lower after US rate hikeAsian stocks have risen while Europe markets opened lower after the Federal Reserve raised its benchmark lending rate again to cool inflation and said it wasn’t sure what may come next.
Source: wjxt4 - 🏆 246. / 63 Read more »

Stock Market Today: PacWest Tumbles; Oil SteadiesAftershocks from March’s banking turmoil rumble on, even as the end of the Federal Reserve’s aggressive rate-rise campaign approaches
Source: WSJ - 🏆 98. / 63 Read more »

Paramount Global Swings To Loss On Streaming, Soft Ad Market In Rough First Quarter; Stock DropsParamount Global fell shy of Wall Street forecasts with ongoing losses in streaming exacerbated by soft advertising at its TV/Media group last quarter, and a dip in filmed entertainment as well. Th…
Source: DEADLINE - 🏆 109. / 63 Read more »

Stock market today: Wall Street sinks as bank fears flareAsian stocks have risen while Europe markets opened lower after the Federal Reserve raised its benchmark lending rate again to cool inflation and said it wasn’t sure what may come next.
Source: KPRC2 - 🏆 80. / 68 Read more »

Stock Market News Today: Indexes drop on Fed rate hike, banking fearsUS stocks fall after the Fed hikes rates and bank contagion spreads
Source: BusinessInsider - 🏆 729. / 51 Read more »

Stock market news today: US stocks tumble on new banking volatilityUS stocks tumble as investors fret over new bout of banking sector volatility
Source: BusinessInsider - 🏆 729. / 51 Read more »