U.S. businesses are expected to see corporate earnings drop owing to a slowdown in the economy and rising interest rates, while many prominent tech firms will continue with staff layoffs starting this month, according to analysts.
“Downgrades will be a key driver of the first quarter and especially this earnings season,” Joachim Klement, a market analyst at Liberum Capital in London, told The New York Times. “I expect a lot of downward guidance for 2023 from all kinds of companies as we head towards recession.”
Elevated inflation, a slowing economy, and the Federal Reserve’s decision to keep raising interest rates will likely result in S&P 500 companies seeing profits decline by 10 percent this year, according to calculations by Liberum….