From The Economic Times · Anupam Nagar · · 1m 10s
US Stocks Enter Strong Q4
US stocks face Q4 gains as bond yields and AI spending drive market focus.
In brief
US stocks face Q4 gains as bond yields and AI spending drive market focus. US stocks enter traditionally strong fourth quarter with rising bond yields and AI spending as key market drivers. Originally reported by The Economic Times.
Q4 traditionally strong for US stocks
US stocks enter fourth quarter with historically favorable seasonal trends.
S&P 500 gains 13% in 2026
S&P 500 gained nearly 13% in 2026 and was about 1% below its record high.
Q4 average gain 4.2%
S&P 500 averages 4.2% gain during October-December period since 1945.
Midterm election years stronger
S&P 500 averages 6.4% gain in midterm election years.
Midterm years historically weaker
S&P 500 averages 15% decline during midterm election years.
10-year Treasury yield at 5.34%
10-year US Treasury yield climbed to 5.34%, highest in 24 years.
Bond yields threaten stocks
Higher yields make bonds more attractive and pressure stock valuations.
Earnings season ahead
PepsiCo and Delta Air Lines report results this week with major banks following.
AI spending critical for growth
AI hyperscalers commit huge sums to data centers and computing infrastructure.
The key point
US stocks enter traditionally strong fourth quarter with rising bond yields and AI spending as key market drivers.
