WFC - Earnings Season Preview: How Will Corporate Profit Outlooks Impact Markets In 2024? | Benzinga
Equity markets remain under pressure on Monday as investors await the start of fourth-quarter earnings season for guidance on whether the rally of November and December could be resumed in January.
Last week was the first down week for U.S. stocks following nine-consecutive weeks of gains for the S&P 500 index and for the SPDR S&P 500 ETF (NYSE:SPY), the exchange traded fund that mirrors the index’s moves. After gaining 16% in the most recent stage of a powerful 2023 rally, last week the index lost 1.6%.
Why Are Equity Markets Moving Lower In January?
Several factors are at play here:
- Some analysts believe that after a prolonged rally, stock valuations are at levels where profit taking looks attractive
- Markets have gotten ahead of themselves on Federal Reserve rate cut expectations, and the likely real pace of cuts are now fully priced in
- Geopolitical events, particularly in the Middle East, could yet push up oil prices and add to inflationary pressures
- Concerns over economic slowdown have become harder to ignore and investors are now awaiting signals from fourth-quarter earnings reports over whether the rally ...