Stocks have busted through records recently, rising thanks in large part to dovishness from the Federal Reserve. The central bank has positioned itself to cut interest rates this month for the first time since the financial crisis.
Investors’ outlook on rates has helped equities outdistance weaker growth around the globe that has been crimped by a continuing trade dispute between the U.S. and China, the world’s two biggest economies.
Now a bleak outlook for corporate earnings is being added to the mix. More than 80 S&P 500 companies warned that their second-quarter financial results will be weaker than initially expected, including online-streaming giant Netflix, software maker Adobe Inc. and industrial conglomerate Honeywell International Inc., according to FactSet.