The US economy is firmly in the middle of a slowdown that’s turning out to be worse than expected amid the war in Ukraine and China’s Covid Zero policy, according to Morgan Stanley strategists.
The S&P 500 is emerging from its worst first half in more than 50 years as investors worry that a toxic combination of a hawkish Fed and surging inflation will fuel an economic contraction. If macroeconomic data don’t confirm a recession, equity markets could rally further, according to Morgan Stanley, but if growth were to indeed contract, the S&P 500 may sink to 3,000 points — about 22% below its latest close, Wilson said.
With S&P 500 and Nasdaq 100 forward earnings estimates both more than 20% above the post-global financial crisis trend, there are signs that profit expectations will be cut over the next few months, Wilson said.
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Morgan Stanley sees further market weakness on lower earnings forecastsAny decline in rates should be regarded as more of a growth concern than as potential relief from the Fed, investment bank says
Source: BDliveSA - 🏆 12. / 63 Read more »
Morgan Stanley sees further market weakness on lower earnings forecastsAny decline in rates should be regarded as more of a growth concern than as potential relief from the Fed, investment bank says
Source: BDliveSA - 🏆 12. / 63 Read more »
Source: allafrica - 🏆 1. / 99 Read more »