Stock analysts turned net pessimistic about US corporate earnings prospects for the first time in months as markets worried that inflation and rising interest rates would erode corporate profits. A Citigroup index shows that for the first time in 23 weeks, the number of analysts who lowered corporate profit expectations surpassed the number of those raising expectations, thus ending the longest cycle of increasing profit expectations 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 the recent downward trend while further increases in energy prices prompt monetary policy tightening.

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