Why Experts Say Earnings Growth May Be Stalling -- and What That Means For Stocks

Experts cited by JPMorgan warn that earnings growth momentum could be stalling, which may have implications for equities. In a Thursday note led by Khuram Chaudry, analysts said earnings upgrades remain “plentiful,” but revisions are indicating the “fuel may be running low.” The article points to a divergence: earnings forecasts have moved higher while the S&P 500 has slipped in recent weeks. Two macro indicators are highlighted as possible signals of an earnings slowdown: the PPI-CPI spread has narrowed, and the U.S. ISM order-to-inventories ratio has declined for three months. Oil is framed as a key risk, with Brent trading above $100 per barrel for the first time since late May after Red Sea disruption fears following attacks on Saudi oil tankers. Wells Fargo’s Sameer Samana and Goldman’s projections suggest near-term support before potential declines toward about $80, assuming de-escalation.