"Big Banks to Set Market Tone with Earnings Amid Challenging Year-End Forecasts"

As the fourth-quarter earnings season approaches, investors are bracing for a reality check after a year-end market rally fueled by hopes of lower interest rates. Wall Street's optimism has waned, with analysts expecting only a 1.3% growth in S&P 500 companies' per-share profits, a significant drop from the previously anticipated 8%. Companies are likely to continue cost-cutting measures, as seen with Nike and FedEx, amidst concerns over high prices, selective consumer spending, and economic uncertainty. The Federal Reserve's mixed signals on interest rate cuts versus hikes add to the market's challenges, while sectors like energy and healthcare drag down earnings expectations. The upcoming earnings reports from major companies like JPMorgan Chase and Delta Air Lines will provide insights into the economic outlook and set the tone for market performance in the new year.