Wall Street is preparing for a season of multidirectional reporting

In the next few weeks, income statements from companies will be released that will provide insight into the direction of the US economy in the coming months. During the period of chaos in the market, investors have hope for some certainty.

Since the summer, that is, from the moment when investors last received news from the management of corporations, interest rates, which have an impact on increasing the costs of enterprises, have risen significantly. However, it is highly likely that corporate earnings will remain at the same high level, as consumer spending and employment have remained at the same level.

Many investors are spooked by the Fed's firm intention to curb inflation and cool the economy, which has already overtaken the performance of companies and caused sales to slump and profits to fall in the third quarter. This situation may lead to the layoff of employees by companies and a reduction in investment in the coming months, which will increase the chances of a recession in the US.