Reported 7 days ago
Analysts on Wall Street are reducing their earnings growth forecasts for S&P 500 companies, indicating potential slowdowns in the current stock market rally. A gauge of earnings-revision momentum has shifted to negative, suggesting that while profits are still expected to increase in the short term, uncertainty regarding economic conditions and Federal Reserve policies could limit future growth. With the index's current high valuations, sustained profit growth is necessary to justify these levels, leading to concerns of a market reversal.
Source: YAHOO