Stock futures fall after weak retail earnings affirm inflation fears

Reuters

Two major banks expect more pain for U.S. equities

Two major banks expect more pain for the U.S. stock markets after benchmark indexes posted on Wednesday their worst one-day losses in two years. In a report published on Thursday, Barclays strategists said margins for U.S. companies and their forward earnings were under pressure due to a combination of factors, ranging from severity of China’s COVID lockdowns to the war in Ukraine and the U.S. Federal Reserve’s hawkish stance. “Given the numerous negative near-term catalysts for the SPX we believe that the risks remain firmly stacked to the downside,” they said in a note, referring to the S&P 500.