Stock swoon resets valuations but recession risk, rates cloud outlook

U.S. stocks are starting 2023 at much cheaper levels after Wall Street’s biggest swoon in 14 years. But the potential for a recession combined with higher interest rates means equities may not be priced low enough to lure investors. Since the S&P 500 reached an all-time high a year ago, the index’s price-to-earnings ratio has fallen over 20%. . . .