The SPDR S&P 500 ETF Trust is off to a shaky start to 2022, and Bank of America analyst Ohsung Kwon cut his 2022 S&P 500 EPS forecast on Monday heading into first-quarter earnings season.
The Numbers
Kwon is now projecting 6 percent S&P 500 EPS growth this year, down from his previous estimate of 6.5 percent growth. Looking ahead to 2023, Kwon is calling for just 4 percent growth.In addition to the earnings cuts, Bank of America also cut its 2022 global GDP growth forecast from 4.3 percent to 3.6 percent. Kwon said every 1 percent drop in U.S. GDP has historically translated to about a 3 percent or 4 percent hit for S&P 500 earnings.
