Although the current US prices continue to rise, inflationary pressures are still present, monetary stimulus policies may be reduced, and the epidemic infection rate is rising, the focus of investment has always been on companies’ better-than-expected financial reports.
Some experts warned that although most of the corporate earnings reports of the S&P 500 index exceeded Wall Street expectations, the stock prices were not rising. Whether the subsequent gains in US stocks can continue has become a hidden concern for the market.
Jill Carey Hall, an equity strategist at Bank of America, said in an interview that judging from recent earnings reports, the good news for many companies has been digested. Companies with better-than-expected earnings reports may not perform as well as expected.
According to data compiled by Bloomberg, up to 85% of the S&P 500 companies reported exceeding expectations in the second quarter, but on average, their stock prices rose by only 0.2% on the second day after the financial report, and the first quarter A similar trend appeared, with the average stock price falling 0.1% at the time.
In addition, the performance of technology stocks has been particularly weak after the financial report was announced. Data shows that 94% of the technology stocks that have announced their financial reports so far have exceeded their original expectations, but the stock prices of these companies have fallen by an average of 0.6% on the next day.
Gina Martin Adams, chief equity strategist at Bloomberg Information, said: “When valuations continue to soar, profits do need to increase. But even if the revenue of many technology companies does increase, the prospects of some companies are actually It’s not too optimistic, just like Apple’s forecast that the company’s future revenue growth may slow down.”
Tobias Levkovich, chief U.S. equity strategist at Citigroup, estimates that by the end of this year, the S&P 500 index will be back 10% from current levels, and it may begin to fall as early as September. He pointed out that the market has certain volatility, and there are four factors that may have an impact on the stock market in September, including the increase in corporate taxes, cost pressures that erode profit margins, the Federal Reserve’s reduction of monetary policy, and longer-lasting inflation. .
Kristina Hooper, global chief strategist at Invesco, a US asset management company, also warned earlier that US stocks may see a 10% to 15% correction.
