S&P 500 Profit Generators Under Threat From Peak Inflation
- Banks, energy forecast to contribute half of overall growth
- Their prospects are now being overshadowed by yields and oil
Where to Invest in Uncertain Times
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The engine of the U.S. earnings recovery that’s underpinned stock gains this year is starting to sputter.
Financial and energy companies are forecast to account for almost 50 percent of the S&P 500 Index’s profit growth in the first six months of the year thanks to anticipated gains in consumer and energy prices. But the chances those sectors meet those targets have dimmed as Treasury yields revert to levels last seen in 2016 and crude slumps back toward $50 a barrel.