* Russia set to formally annex parts of Ukraine
* Hurricane Ian heads to Carolinas after hammering Florida
* Eurozone inflation soars to record high of 10% in September
* US GDP 0.6% decline is confirmed in revised data
* US gross domestic income (GDI) revised down for Q2
* China manufacturing activity fell for a second month in September
* China services sector slows in September, highlighting struggling economy
* US jobless claims fall to 5-week low, suggesting labor market strength:

Is the Federal Reserve going overboard with interest rate hikes? Maybe, but it’s too soon to know for sure, writes economist Paul Krugman. “The current economic situation is full of uncertainty, and any policy decision involves making trade-offs among various risks. What we can say is that the risk that the Fed is moving too slowly to contain inflation has declined, while the risk that high interest rates will cause severe economic damage has gone up — a lot.”

Some analysts think S&P 500 could rally sharply over the next 12 months in the wake of steep losses so far in 2022. “Industry analysts in aggregate predict the S&P 500 will see a price increase of 25.7% over the next twelve months,” writes John Butters, vice president and senior research analyst of FactSet, a research firm. “This percentage is based on the difference between the bottom-up target price and the closing price for the index as of yesterday (September 22). The bottom-up target price is calculated by aggregating the median target price estimates (based on company-level estimates submitted by industry analysts) for all the companies in the index. On September 22, the bottom-up target price for the S&P 500 was 4,724.28, which was 25.7% above the closing price of 3,757.99.”