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S&P 500 forecast: substandard and poor

The U.S. economy is slowing, earnings growth is increasingly scarce and the negative effects of a 100 basis point rise in interest rates are only beginning to filter through. And this is before we see data reflecting the economic drag of the ongoing government shutdown.

Factset’s discovery of a record number of U.S. companies guiding profits lower presaged a very weak third-quarter earnings season for the S&P 500. So far, although the number of companies reporting is small at 37, Reuters reports that more than 30 per cent have posted profit growth below analyst expectations.