Analysts Turn Net Bearish on US Corporate Earnings for First Time in 23 Weeks

Stock analysts turned net pessimistic on US corporate earnings for the first time in 23 weeks, ending the longest upward revision cycle since September 2021, according to a Citigroup index cited on September 23, 2026. The number of analysts cutting profit estimates exceeded those raising them, driven by concerns that inflation and high interest rates are pressuring corporate profits. Sectors leading the downgrades include consumer staples, consumer discretionary, materials and financials, said Stephan Kemper, chief investment officer at BNP Paribas Wealth Management, attributing the revisions to rising living costs and higher energy prices. Morgan Stanley strategist Michael Wilson warned the S&P 500 could fall as much as 7% if equity valuations extend recent losses and rising energy prices force further monetary tightening. The OECD said in a Wednesday report that global inflation will run faster than expected, warranting tighter monetary policy. The Federal Reserve raised rates earlier this month for the first time in three years.