Tech stocks have been plunging as Wall Street obsesses over the Federal Reserve’s next moves and how aggressively it will hike borrowing costs over the next 12 months to rein in inflation.
But attention could soon shift elsewhere as corporate earnings season arrives, delivering a distraction from the economy and the unknowns that lie ahead.
What’s happening: S&P 500 earnings are expected to have increased by 22.4% compared to the previous year during the final three months of 2021, according to Refinitiv. That would be a strong showing.
In a note to clients on Friday, UBS said that despite a volatile start to the year, it does not think a more hawkish Fed will “derail” the stock market rally, and that earnings season will “turn investor attention back to robust fundamentals.”