# US stocks climb amid rising rates

> US stocks rise despite higher interest rates and bond yields.
- Title: US stocks climb amid rising rates · MoneyWeek | Shortify
- Summary: US stocks rise despite higher interest rates and bond yields. US stocks climbed 12% this year as S&P 500 earnings rose 50% year on year, with valuations…
- Keywords: s&p 500, nasdaq 100, interest rates, bond yields, forward price-to-earnings ratio, ai boom, technology stocks, energy firms, banks, fiscal largesse, gdp, pmi
- Source: MoneyWeek — https://moneyweek.com/investments/us-stock-markets/us-stocks-soldier-on-through-adversity
- Published: 2026-10-02T08:26:33+00:00
- Read time: 1 min
- Topics: s&p 500, nasdaq 100, interest rates, bond yields, forward price-to-earnings ratio, ai boom, technology stocks, energy firms, banks, fiscal largesse, gdp, pmi
## US stocks climb
US stocks continue to climb despite rising interest rates and squealing bond yields.
## S&P 500 up 12%
The S&P 500 index has risen another 12% so far this year, with the technology-focused Nasdaq 100 up a fifth.
## Earnings surge
S&P 500 earnings rose 50% year on year in the second quarter, an incredible number that you usually only see during a recovery after a recession.
## Broad-based rally
Energy firms are raking in money from rising fuel prices while banks are throwing off cash because of higher interest rates.
## AI boom supports growth
The AI boom is also supporting strong performance at industrials, whose expertise in power management and construction is essential for the data centre build-out.
## Valuations fall
The S&P 500 trades on a forward price-to-earnings ratio of 19, down from 23 a year ago.
## Why valuations fall
It prices in an assumption that the current AI splurge won't last forever, reflects concerns that higher inflation may ruin the party, and faces competition from fixed-income securities.
## GDP growth strong
The Atlanta Fed's GDPNow tracker estimates that GDP grew at an annualised pace of 5% in the just completed third quarter.
## Key takeaway

US stocks climbed 12% this year as S&P 500 earnings rose 50% year on year, with valuations falling to a forward P/E ratio of 19.