#wallstreetearningsrevisionsturnbearish Wall Street earnings estimate momentum just flipped.
And the interesting part isn’t that analysts suddenly expect U.S. companies to collapse.
Bloomberg says a larger number of stock analysts in the U.S. are now cutting earnings estimates instead of raising them, ending a streak of net upward revisions that lasted 23 weeks, according to a Citi Group gauge.
The pressure shows up across consumers, materials, and the financial sector, with rising living costs and energy prices cited as key factors.
But there’s an important distinction here.
FactSet data through August still shows that S&P 500 index third-quarter earnings-per-share estimates are up 1.2%, while full-year 2026 estimates are up 6.1%.
So this isn’t yet a story of earnings collapse.
It’s a story of estimate momentum.
After months of analysts continuously raising their forecasts, the direction has changed.
For traders, I’ll be watching to see whether this becomes a short-term reversal or the start of a broader deterioration in earnings expectations.
And that may be more important than the headline itself.
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