The market went up last year on these earnings.
It went down this year based on next year’s earnings, which will not increase as much, as well as next year’s interest rates.
How does the market know what will happen next year? That is a very interesting question....
The market(traders) hasn’t a clue what is coming down the road any more than we do. It’s all a guess based on projected earnings.
Aside from unexpected incidents such as war, catastrophic events and the like, the main impetus for the market are earnings. Earnings good markets up, earnings miss markets down.
It’s really not complicated
No the market is tanking because interest rates are rising. Look for companies to report strong earnings next two quarters. Watch for the revision of December GNP to above 3% to boost stock prices again