Economics
JPMorgan Joins Goldman in Cutting Profit Estimates for S&P 500
- Major companies, such as Apple, warn about outbreak’s impact
- Goldman sees zero profit growth for U.S. companies amid virus
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The rapid spread of the coronavirus has made equity strategists at Goldman Sachs Group Inc. and JPMorgan Chase & Co. slash their outlook for U.S. corporate profit growth, as the epidemic erodes revenue and dents the global economy.
“Our reduced forecasts reflect the severe decline in Chinese economic activity in the first quarter, lower end-demand for U.S. exporters, supply chain disruption, a slowdown in U.S. economic activity, and elevated uncertainty,” Goldman strategists led by David Kostin wrote in a note Thursday.