Meanwhile, in other parts of Wall Street, predictions have been pessimistic. Morgan Stanley’s chief stock strategist Mike Wilson warned that corporate earnings estimates were still at least 20% too high for 2023.
Meanwhile, Bank of America, Morgan Stanley, and Deutsche bank have warned of a 20% slump in stocks, as still persistent inflation and high-interest rates continue to rattle the market.
Investors are pricing in a 50-basis-apoint rate hike from the Fed next week, but markets are still unsure how far the central bank will raise rates, or how sticky inflation will be on the downtrend.
