Wall Street expects inflation squeeze on 2Q earnings

By DAMIAN J. TROISE
AP Business Writer

NEW YORK (AP) — Inflation tightened its grip on businesses and consumers during the second quarter, and investors expect to see a dent in the latest round of corporate earnings. Wall Street had expected relatively muted earnings growth in 2022 following a sharp recovery in 2021 that was driven by pent up demand from consumers. Analysts, though, have been trimming already modest forecasts for earnings growth. Recession concerns and the shift in consumer sentiment and spending can be seen in the stark reversal in forecasts for retailers and other companies that rely on direct consumer spending.