U.S. corporate earnings growth expectations continue to cool, with analysts warning that high-valued U.S. stocks have limited room for error.

Data compiled by Bank of America shows that while S&P 500 third-quarter earnings expectations remain strong, profit growth is projected to slow quarter-over-quarter for 10 of its 11 sectors. Data from industry research aggregators indicates analysts expect S&P 500 constituents’ profit growth to decelerate from 25% in Q3 2026 and 28% in Q4 2026 to 18% in the first half of 2027, signaling a slight softening in the overall earnings outlook ahead. A slowdown in profit growth expectations alone is no

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