The main factor contributing to the growth of share prices, the income of large companies combined with a reduction in consumer spending will weaken due to the increased key rate. This warning was voiced by JPMorgan, which against this background is considering lowering the consensus forecast of earnings per share for the next year by 12%. The bank's estimate is quoted by investing.com with reference to Business Insider.

A longer stay of the rate at an elevated level will increase interest expenses of large companies. Corporate debt currently stands at $800 billion and matures in 2025. At the current rate, refinancing it would reduce profits for companies in the S&P 500 by $3, the bank said. In addition, consumer demand in this environment could fall to near marginal levels. With corporate revenue falling just 1%, earnings per share would fall by $2.25.