Bank of America pointed out four factors threatening the stock market, Investing.com reports with reference to Business Insider. Despite the positive macroeconomic indicators in the U.S., they can stop its current growth, the bank believes. These risks are discussed below.
1. Sluggish demand. The financial results of companies in the S&P 500 for the fourth quarter were worse than expected. Revenues increased by just 3%, below the rate of inflation in the States.
2- The trend toward downsizing is accelerating. More big companies, including Microsoft and Alphabet, are laying off employees - sowing doubts that demand has turned to growth.
3. More companies are cutting dividends. A number of experts see this as a signal that if the key rate remains at current levels, corporate earnings will soon start to suffer.
4. The attacks of the Hussites in the Red Sea and the Panama Canal disrupted international supplies. Experts forecast inflation growth against this background, which may keep the Fed from lowering the rate this year.