Wall Street Fears What Higher Rates Will Do to Corporate America
- Inflation requires rates to be ‘higher for longer’: BofA
- Profit margins to weaken as inflation bites: Morgan Stanley
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Some of Wall Street’s biggest banks expect a lengthy period of higher interest rates to further pressure Corporate America’s profit engine, threatening equity gains as companies grapple with elevated financing costs and margin-shredding inflation.
While corporate earnings have been better than feared this season, Morgan Stanley and Bank of America Corp. strategists have warned that profit estimates will need to be cut much further before stocks can find a true low.