Stocks have tumbled this year in the face of rising interest rates. But with inflation showing little sign of cooling, many investors fear corporate earnings could be the market’s next support to fall.
The S&P 500 has dropped 18% in 2022, its worst start to a year since 1962, as the Federal Reserve embarks on an aggressive rate-raising campaign to bring down sky-high inflation. The swift tightening of monetary policy has trampled on the rich valuations stocks carried at the start of the year, leaving earnings growth as a key pillar for the market to regain its footing.
