US corporate earnings expectations have turned net negative for the first time in 23 weeks, ending the longest streak of upward revisions since September 2021. Citigroup data shows analysts lowering profit forecasts now outnumber those raising them as concerns grow that inflation and rising interest rates will erode corporate margins. Morgan Stanley strategist Michael Wilson warned that the S&P 500 could decline up to 7% if valuations continue sliding while rising energy prices prompt tighter monetary policy. The shift in sentiment marks a significant reversal after months of sustained optimism regarding US corporate profitability.