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The Stock Market’s Hot Summer Became a Swoon. Where Does It Go Next?


“There’s a potential for an earnings recession, meaning you have a couple of quarters of negative earnings growth,” said Mike Wilson, chief U.S. equity strategist at Morgan Stanley, who thinks the sell-off could continue through the end of the year. “The risk of that happening is increasing.”Of course, wild cards could turn the market around. Positive news on Covid treatments or cases can buoy enthusiasm, just as Merck’s announcement about an antiviral pill to treat Covid-19 did on Friday. So could agreement in Washington on more spending, which could offset the slowdown in growth.Mr. Wilson …

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