$SPY(SPY)$Next week will kickstart the earnings season for US companies. Judging from those who already reported their earnings earlier (NIKE, Micron, AMD etc) current earnings is most likely to see a downward revision. This shouldnot be a surprise though; the Fed is intentionally hiking rates to force demand cut. This will naturally lead to lower earnings reported from 3Q onwards as consumers buy less and cut back on purchases.
You can even say the impending recession is engineered by the Fed to bring down the inflation.
In my opinion, Fed wants to bring down inflation quickly rather than gradually, because the US's 31 trillion of debt cannot sustain 4%+ rate for a prolonged time. Hence, be prepared to see more losses next week as companies report earnings and US announced its Sep CPI data.
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