Posted 12/3/2023, 5:01:00 PM
Stock Rally Defies Recession Fears, But Risks Loom As Economy Cools
- Stock market rally defies bears, fuels "soft landing" hopes, but risks remain with slowing consumer spending and earnings
- Signs emerging that robust consumer spending has likely peaked following pandemic rebound
- Pullback in spending welcome for Fed trying to tame inflation, but could hurt consumers and lead to 2024 economic slowdown
- November jobs report will provide critical signal on labor market strength and Fed rate path
- Bullish 2024 profit forecasts seem overly optimistic given economic risks; Wall Street analysts historically overestimate future earnings