Citigroup index shows U.S. corporate earnings expectations turn negative for the first time in 23 weeks
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AT A GLANCE
A Citigroup index shows that U.S. corporate earnings expectations turned negative for the first time in 23 weeks, while the S&P 500 was warned that it could fall by up to 7%.
Article
Citigroup: U.S. corporate earnings expectations turn negative for the first time in 23 weeks; S&P 500 may face a 7% decline
PANews, September 23: As concerns grow that inflation and rising interest rates will erode corporate profits, equity analysts have turned net bearish on the outlook for U.S. corporate earnings for the first time in months. An index from Citigroup shows that, for the first time in 23 weeks, the number of analysts downgrading corporate earnings expectations exceeded the number raising them, ending the longest-running cycle of upward earnings-expectation revisions since September 2021. Morgan Stanley strategist Michael Wilson warned earlier this week that the S&P 500 could face a decline of up to 7% if stock valuations continue their recent slide while further increases in energy prices prompt tighter monetary policy.
An index from Citigroup shows that, for the first time in 23 weeks, the number of analysts downgrading U.S. corporate earnings expectations exceeded the number raising them.
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The original text says this ended the longest-running cycle of upward earnings-expectation revisions since September 2021.
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Morgan Stanley strategist Michael Wilson warned that the S&P 500 could fall by up to 7% if stock valuations continue to decline, energy prices rise further, and monetary policy consequently tightens.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Analysts as a group have begun downgrading corporate earnings forecasts more often than upgrading them, indicating that they have become more cautious about companies’ future profits. The 7% decline is a risk assessment under specific conditions, not an outcome that has already occurred.
Why it matters to readers
Corporate earnings expectations and the interest-rate environment affect stock valuations; if earnings forecasts continue to decline or monetary policy tightens further, equity markets may come under pressure.
Beginners should distinguish between an observed change in the data and a conditional market forecast, and should not interpret “could fall by 7%” as a certain result.
Risks and unknowns
The 7% decline is a conditional forecast, and the original text does not establish whether it will occur.
The original text does not provide the specific name, calculation method, or complete data for the Citigroup index.
The original text only states “September 23” and does not specify the year.
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Earnings Expectations
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