Declining S&P 500 Profit Forecasts Signal Trouble for Stock Market Rally

Reported 15 days ago

Wall Street analysts are downgrading their expectations for corporate earnings growth, which may halt the current stock market rally. A key indicator of earnings momentum has shifted to negative territory, raising concerns about the sustainability of gains in the S&P 500, especially as companies display mixed outlooks amid economic uncertainties. Analysts predict a modest profit growth overall for 2025, suggesting that high valuations in the index may face downward pressure if robust profit growth does not materialize.

Source: YAHOO

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