The U.S. market is under tremendous pressure due to soaring consumer prices, aggressive rate hikes, and rising recession fears. Amid such macroeconomic uncertainties, the fiscal third-quarter financial report came in lower than expected. Moreover, analysts are also projecting a decline in the U.S. fourth-quarter earnings for the first time in two years. This is weighing further on the stock market.
However, on the positive side, Goldman Sachs expects a significant decline in inflation next year as prices and wage growth slow down. The bank expects core personal consumption expenditure (PCE) to fall to 2.9% by December 2023 from the current 5.1% level. PCE is the Federal Reserve’s preferred measure of inflation. In addition, the Fed’s policy meeting held earlier this month also suggested a slower pace of interest rate hikes in the future.
