Bankruptcies Surge, S&P 500 Faces Stock Market Crash

Societe Generale's Albert Edwards warns that a recession is still looming as bankruptcies among small firms increase due to rising interest rates. While large firms have been able to borrow money and benefit from higher rates, smaller companies are struggling to access funds and are facing financial trouble. The rise in bankruptcy filings and tightening lending standards for small businesses could have a significant impact on job growth and potentially tip the economy into a recession. This would also affect the earnings of larger companies, which drive the performance of the S&P 500. While some indicators show weakness ahead, such as contracting manufacturing activity and increasing late payments on loans, the overall state of the US economy is still uncertain.