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Wall Street Sours on S&P as Margin Woes Rattle Corporate America

  • Rising margin pressures are a ‘risk to earnings’: BlackRock
  • Equity valuations are ‘far from depressed’: Goldman’s Kostin
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S&P In Bear Market for First Time Since March 2020
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Wall Street is afraid to buy the dip this time around.

Even amid this latest leg of the stock market selloff, equities still aren’t fully reflecting the risks facing corporate earnings, according to strategists at Morgan Stanley, Goldman Sachs Group Inc. and BlackRock Investment Institute. Weaker consumer demand and aggressive tightening by the Federal Reserve in an attempt to fight the hottest US inflation in four decades can do further damage to corporate bottom lines and, in turn, share prices.