{"id":65400,"date":"2023-09-25T22:22:18","date_gmt":"2023-09-26T02:22:18","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/why-the-stock-markets-september-stumble-isnt-just-about-rising-bond-yields\/"},"modified":"2023-09-25T22:22:22","modified_gmt":"2023-09-26T02:22:22","slug":"why-the-stock-markets-september-stumble-isnt-just-about-rising-bond-yields","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=65400","title":{"rendered":"Why the stock market\u2019s September stumble isn\u2019t just about rising bond yields"},"content":{"rendered":"
\n

As stock-market investors worry about the damage to equities being inflicted by a jump in Treasury yields, revisions to S&P 500 earnings forecasts may also be souring sentiment.<\/p>\n

\u201cAfter several weeks of seeing Wall Street analysts increase or at least maintain their 2023 and 2024 S&P 500 earnings estimates, the trend reversed to the downside last week,\u201d said Nicholas Colas, co-founder of DataTrek Research, in a note emailed Monday. \u201cThis may have played an underappreciated role in last week\u2019s selloff.\u201d<\/p>\n

\n

Last week Wall Street cut its third-quarter earnings estimate for the S&P 500 to $55.74 a share, down 0.6% from the prior week, \u201cerasing all the upside revisions\u201d over the past seven weeks, according to the note. For the fourth quarter, analysts last week lowered their forecast by 0.4% to $57.85 a share, reducing Wall Street\u2019s estimate to \u201cessentially where it was at the start of June,\u201d Colas said.<\/p>\n

The cuts to earnings forecasts marks a shift from earlier market commentary on \u201cthe recent upswing in estimates\u201d bringing fresh optimism about corporate profits, according to DataTrek. Colas said that many trading algorithms use revisions to earnings forecasts as an input.<\/p>\n

\u201cWhile small earnings estimate revisions don\u2019t usually matter, trends in this data sometimes do,\u201d he said. \u201cWe expect to see further cuts in the week ahead as analysts set their final Q3 estimates.\u201d<\/p>\n

The S&P 500 closed modestly higher Monday, bringing its September loss to 3.8% in the last trading week of the month, FactSet data show. The index fell the past three straight weeks, finishing Friday at the index\u2019s lowest closing value since June 9, according to Dow Jones Market Data.<\/p>\n

Most of the S&P 500\u2019s 11 sectors are down so far in September, with only energy and utilities posting month-to-date gains through Monday. The utilities sector was clinging to a 1% gain month to date, while the S&P 500\u2019s energy stocks were up 2.5% amid higher oil prices
\n CL00,
\n +0.06%<\/bg-quote>
\n in September.<\/p>\n

The S&P 500 on Friday had logged a third-straight weekly decline as rising bond yields dented equity valuations following the Federal Reserve\u2019s policy meeting that ended Sept. 20. Ten-year Treasury yields rose to the highest levels since 2007 after the Fed signaled it might raise interest rates again this year and then keep them higher for longer than markets appeared to anticipate.\u00a0<\/p>\n

The yield on the 10-year Treasury note
\n BX:TMUBMUSD10Y
\n rose 10.3 basis points Monday to 4.541%, the highest rate since Oct. 17, 2007 based on 3 p.m. Eastern Time levels, according to Dow Jones Market Data. That\u2019s after rising three straight weeks. Higher yields translate to borrowing costs, which can weigh on companies. <\/p>\n

As for corporate earnings expectations for next year, DataTrek pointed to revisions downward.<\/p>\n

Wall Street analysts lowered their 2024 earnings estimate for the S&P 500 by 0.3% last week to $247.90 a share, the first reduction in nine weeks, according to DataTrek.\u00a0<\/p>\n

For the first half of next year, they cut their earnings estimate for the U.S. stock-market index to $57.93 a share for the first quarter, while reducing their second-quarter forecast to $60.90 per share, according to DataTrek.\u00a0<\/p>\n

U.S. stocks ended higher Monday despite the climb in Treasury bond yields. The Dow Jones Industrial Average
\n DJIA
\n edged up 0.1%, while the S&P 500
\n SPX
\n rose 0.4% and the Nasdaq Composite
\n COMP
\n advanced 0.5%, FactSet data show.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

As stock-market investors worry about the damage to equities being inflicted by a jump in Treasury yields, revisions to S&P 500 earnings forecasts may also be souring sentiment. \u201cAfter several weeks of seeing Wall Street analysts increase or at least maintain their 2023 and 2024 S&P 500 earnings estimates, the trend reversed to the downside […]<\/p>\n","protected":false},"author":1,"featured_media":65401,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-65400","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nWhy the stock market\u2019s September stumble isn\u2019t just about rising bond yields | iFintechWorld<\/title>\n<meta name=\"description\" content=\"As stock-market investors worry about the damage to equities being inflicted by a jump in Treasury yields, revisions to S&P 500 earnings forecasts may\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=65400\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why the stock market\u2019s September stumble isn\u2019t just about rising bond yields | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"As stock-market investors worry about the damage to equities being inflicted by a jump in Treasury yields, revisions to S&P 500 earnings forecasts may\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=65400\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-26T02:22:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-26T02:22:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/09\/1695694940_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1279\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=65400#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=65400\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Why the stock market\u2019s September stumble isn\u2019t just about rising bond yields\",\"datePublished\":\"2023-09-26T02:22:18+00:00\",\"dateModified\":\"2023-09-26T02:22:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=65400\"},\"wordCount\":569,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=65400#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=65400\",\"url\":\"https:\/\/ifintechworld.com\/?p=65400\",\"name\":\"Why the stock market\u2019s September stumble isn\u2019t just about rising bond yields | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-09-26T02:22:18+00:00\",\"dateModified\":\"2023-09-26T02:22:22+00:00\",\"description\":\"As stock-market investors worry about the damage to equities being inflicted by a jump in Treasury yields, revisions to S&P 500 earnings forecasts may\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=65400#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=65400\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=65400#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Why the stock market\u2019s September stumble isn\u2019t just about rising bond yields\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Why the stock market\u2019s September stumble isn\u2019t just about rising bond yields | iFintechWorld","description":"As stock-market investors worry about the damage to equities being inflicted by a jump in Treasury yields, revisions to S&P 500 earnings forecasts may","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=65400","og_locale":"en_US","og_type":"article","og_title":"Why the stock market\u2019s September stumble isn\u2019t just about rising bond yields | iFintechWorld","og_description":"As stock-market investors worry about the damage to equities being inflicted by a jump in Treasury yields, revisions to S&P 500 earnings forecasts may","og_url":"https:\/\/ifintechworld.com\/?p=65400","og_site_name":"iFintechWorld","article_published_time":"2023-09-26T02:22:18+00:00","article_modified_time":"2023-09-26T02:22:22+00:00","og_image":[{"width":1279,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/09\/1695694940_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=65400#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=65400"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Why the stock market\u2019s September stumble isn\u2019t just about rising bond yields","datePublished":"2023-09-26T02:22:18+00:00","dateModified":"2023-09-26T02:22:22+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=65400"},"wordCount":569,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=65400#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=65400","url":"https:\/\/ifintechworld.com\/?p=65400","name":"Why the stock market\u2019s September stumble isn\u2019t just about rising bond yields | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-09-26T02:22:18+00:00","dateModified":"2023-09-26T02:22:22+00:00","description":"As stock-market investors worry about the damage to equities being inflicted by a jump in Treasury yields, revisions to S&P 500 earnings forecasts may","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=65400#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=65400"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=65400#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Why the stock market\u2019s September stumble isn\u2019t just about rising bond yields"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/65400","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=65400"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/65400\/revisions"}],"predecessor-version":[{"id":65402,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/65400\/revisions\/65402"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/65401"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=65400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=65400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=65400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}