With the consumer price index and producer-price index rise for October moderating at 7.7% and 8%, respectively, the markets zoomed on hopes of a moderation in interest rate hikes by the Fed. However, Fed officials have pushed back at the suggestion by clarifying that they might have to keep raising rates for some time.
Moreover, with tech layoffs and stressed earnings showing signs of a broad economic slowdown, the 12-month forward prediction for S&P 500 earnings per share is down more than 3% since June, with next year’s forecast down 8%.
