About two-thirds of the S&P 500 companies that reported earnings in the first two weeks of the season had representatives mention inflation in their earnings calls, as per FactSet, indicating the grim inflationary environment companies are trying to cope with.
On top of it, according to economists polled by Reuters, the Federal Reserve will go for its fourth consecutive 75 basis point interest rate hike in its November meeting, which would lift the federal funds rate to 3.75%-4.00%. Economists also believe the central bank should not pause until inflation falls to around half its current level.
