# US Stocks Enter Strong Q4

> US stocks face Q4 gains as bond yields and AI spending drive market focus.
- Title: US Stocks Enter Strong Q4 · The Economic Times | Shortify
- Summary: 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…
- Keywords: s&p 500, treasury yields, ai spending, federal reserve, market valuations, earnings season, us stocks, money, business, Stocks, Enter, Strong
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/us-stocks/wall-street-guide/us-stocks-enter-seasonally-strong-q4-with-bond-yields-ai-spending-in-focus/articleshow/134686121.cms
- Author: Anupam Nagar
- Published: 2026-10-05T04:48:00+00:00
- Read time: 1 min
- Topics: s&p 500, treasury yields, ai spending, federal reserve, market valuations, earnings season, us stocks, money, business
## 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.
## Key takeaway

US stocks enter traditionally strong fourth quarter with rising bond yields and AI spending as key market drivers.