Inflation declined in October and November, helping markets to breathe a sigh of relief. However, Federal rate hikes are expected to continue well into 2023. Amid such rate hikes, a recent Reuters poll of economists suggests a 60% chance of a U.S. recession in 2023.
Moreover, according to Refinitiv IBES data, profit growth at S&P 500 companies is expected to slow down to 4.9% in 2023 after rising 5.8% in 2022. Mass layoffs have already wreaked havoc in the United States amid the grim economic outlook.
