Stock swoon resets valuations


Since the S&P 500 reached an all-time high a year ago, the index’s price-to-earnings ratio has fallen over 20% from its peaks to levels closer to historic averages. — Reuters

NEW YORK: US stocks are starting 2023 at much cheaper levels after Wall Street’s biggest swoon in 14 years but the potential for a recession combined with higher interest rates means equities may not be priced low enough to lure investors.

Since the S&P 500 reached an all-time high a year ago, the index’s price-to-earnings ratio has fallen over 20% from its peaks to levels closer to historic averages.

Subscribe or renew your subscriptions to win prizes worth up to RM68,000!

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!

WallStreet , stocks , S&P , PE ratio , valuation , earnings , rates

   

Next In Business News

UEM Sunrise on track to hit RM1bil sales target
Perodua teams up with PETRONAS Dagangan and Gentari to improve services and EV support
Karex 1Q net profit tumbles 73.4% to RM1.4mil
DRB-Hicom focuses on digital transformation
FBM KLCI falls for third day, weighed down by Tenaga, YTL stocks
Oil prices climb as geopolitical tensions outweigh US inventories
Indonesian rupiah at three-month low; Asia stocks drop on Russia-Ukraine tensions
PM Anwar: Value of Malaysian business ventures in Vietnam exceeds US$13bil
Bank Rakyat issues inaugural RM500mil Asean sustainability SRI sukuk
China to beef up offshore wind power

Others Also Read