Shares of banks and other financial institutions fell as traders braced for another bout of stock-market volatility.
Despite a strong opening to the year, there's no guarantee that a new bull market began at the recent S&P 500 lows in October, said Mike Wilson, chief equity strategist at brokerage Morgan Stanley, noting that the outlook for earnings growth in the coming year for the broad index recently turned negative.
"In each prior instance (2001, 2008, 2015, 2020), equities have faced significant price downside associated with the shift from positive to negative earnings growth," said Mr. Wilson, in a note to clients. Further, the recent moves in the dollar and interest rates suggest that the initial interpretation of the Federal Reserve's policy statement as dovish may have been premature.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
02-06-23 1736ET
