S&P 500 Rises to Near-Record Level Before Earnings: Markets Wrap
(Bloomberg) — Wall Street traders betting on a solid earnings season sent stocks to a striking distance of their all-time highs, defying concerns about still-elevated energy costs and bond yields.
Most companies in the S&P 500 rose, though a gauge of chipmakers fell again. Brent crude settled near $105 a barrel as the prospect of a wave of Russian diesel hitting global markets competed with mounting supply risks. Treasury cash trading will be closed Monday for Columbus Day. The dollar notched its longest weekly advance since early 2025.
Corporate America is navigating one of the strongest profit cycles in recent history, with the S&P 500 posting seven consecutive quarters of double-digit earnings growth. And investors want to see the momentum continuing.
“I believe corporate earnings remain remarkably strong,” said Bob Edwards at Edwards Asset Management.
Geopolitical clashes, higher yields and artificial-intelligence jitters have all contributed to trader anxiety. The November midterm elections may create some turbulence, but as uncertainty fades, investors will refocus on earnings growth and long-term business fundamentals, Edwards noted.
At Edward Jones, James McCann said robust earnings growth across a range of sectors has helped drive equity returns and should continue to support market performance. Analysts expect a roughly 25% increase in third-quarter S&P 500 profits from a year earlier, according to data compiled by Bloomberg Intelligence.
“Earnings and AI investment remain powerful supports for growth stocks, but high long-term rates, energy-driven inflation risk and narrow breadth leave less room for disappointment,” said Mark Hackett at Nationwide. “With valuations, sentiment and positioning having reset following a prolonged sideways move, there are reasons for optimism.”
Wall Street’s biggest banks are expected to unveil a quarterly stock-trading haul of nearly $19 billion when the firms report earnings next week.
Goldman Sachs Group Inc., which reports Tuesday, is expected to lead the pack with stock-trading revenue of $5.1 billion, followed by Morgan Stanley with $4.9 billion, according to analyst estimates compiled by Bloomberg as of the close of New York markets Thursday. Analysts are forecasting a $4.5 billion haul from JPMorgan Chase & Co. and $2.6 billion of revenue from Bank of America Corp.’s equity traders.
Just ahead of next week’s key inflation figures, data showed consumer sentiment fell in early October and views of current economic conditions hit an all-time low as gasoline prices remained elevated, borrowing costs rose and hiring slowed.
Corporate Highlights:
OpenAI is expecting to reach or exceed $70 billion in annualized revenue by the end of the year, according to people familiar with the matter, driven largely by growth in its enterprise business. SpaceX is closing in on a crucial swath of spectrum needed to turn Elon Musk’s rocket, satellite and AI company into a “major mobile carrier,” setting the stage for a clash with stalwarts like T-Mobile US Inc., Verizon Communications Inc. and AT&T Inc. Lumentum Holdings Inc.’s optical components are “completely sold out” through early 2029 on demand from tech companies clamoring for faster AI data centers, according to its chief executive officer. Delta Air Lines Inc. reduced its full-year earnings outlook as jet fuel prices remain elevated, signaling mounting pressure on an airline industry whose smaller players are even less equipped to weather spiraling costs. Humana Inc. jumped as the company improved its performance on crucial Medicare Advantage quality ratings that will boost future revenue. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.6% as of 4 p.m. New York time The Nasdaq 100 rose 0.5% The Dow Jones Industrial Average rose 0.8% The MSCI World Index rose 0.7% Currencies
The Bloomberg Dollar Spot Index rose 0.1% The euro was little changed at $1.1201 The British pound was little changed at $1.3241 The Japanese yen fell 0.2% to 158.25 per dollar Cryptocurrencies
Bitcoin rose 0.6% to $82,272.92 Ether was little changed at $2,474.42 Bonds
The yield on 10-year Treasuries advanced two basis points to 5.25% Germany’s 10-year yield declined one basis point to 3.48% Britain’s 10-year yield declined four basis points to 5.44% Commodities
West Texas Intermediate crude rose 0.2% to $91.67 a barrel Spot gold rose 1.5% to $4,194.43 an ounce ©2026 Bloomberg L.P.
