The market braces for a tricky earnings season: Morning Brief

Published On Oct 11, 2024, 6:00 AM

Investors are preparing for a challenging earnings season amid mixed economic signals and global uncertainties. A recent jobs report and inflation data have stirred confusion regarding the Federal Reserve's next moves on interest rates. Compounding the issue are expectations of Chinese stimulus, rising geopolitical tensions, and the upcoming U.S. presidential election, which traditionally impacts stock performance negatively in October. Strategists suggest that while earnings growth may slow, companies managing macroeconomic challenges well could see positive stock performance, particularly if they raise future forecasts. The S&P 500 might test levels around 5,538 before a potential climb to 6,000, but overall sentiment may hinge on companies' guidance in this earnings season.