As crude prices stabilized and US Treasury rates decreased, US equities finished higher on Tuesday. This provided some relief from the worries that have plagued investors in recent weeks and allowed markets to focus on the upcoming third-quarter reporting season.
The S&P 500 and the Nasdaq reached all-time closing highs as a result of the widespread rise.
Oliver Pursche, senior vise president at Wealthspire Advisors in New York, stated that when oil prices stabilize or decline, “that causes yields to move down because there’s less anxiety about energy-driven inflation, which in turn is helping lift stocks higher.”
Quick Fact
| Detail | Information |
|---|---|
| What happened | Third quarter US earnings season begins next week |
| When | Next Tuesday, October 13, 2026 |
| Expected S&P 500 profit growth | 30.6% year over year |
| Energy earnings growth | 114.7% expected increase |
| Tech earnings growth | 66.5% expected increase |
| Company in focus | Marvell Technology |
| Key catalyst | Strong AI and data center demand |
| Current status | Markets await major corporate earnings reports |
AI Trade Stays Strong Amid Rate Shift
According to the Commerce Department’s report, the US trade imbalance increased by 13.7%.
Imports have increased by 4.3% and 28.4% on a monthly and yearly basis, respectively, indicating strong domestic demand that may increase inflationary pressures, especially in light of supply limitations brought on by the conflict.
Nevertheless, the likelihood that the US Federal Reserve will act is presently being priced in by financial markets.
Oil Prices Shape Fed Rate Hike Bets
The spike in oil prices during the Iran War has prompted betting on a Fed rate hike, which might lead to wider price pressures.
Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York, stated, “We don’t expect (the Fed) to do anything at the next meeting.” “But I think they’re in a gradual hiking cycle.”
Earnings Season Begins With Tech Surge
Third-quarter earnings season takes out next week, with a number of high-profile financial businesses slated to report next Tuesday.
Analysts presently expect annual S&P 500 profits growth of 30.6%, in aggregate, for the July-to-September quarter, headed by an predicted 114.7% spike in energy earnings, followed by a 66.5% estimated increase in tech results, according to LSEG.
Marvell Technology (MRVL.O), opens new tab rose following the chip designer’s 2028 revenue projection rise due to robust demand for its data center processors.
US Earnings Set for Strong Growth
Strong S&P 500 profit growth is anticipated as the third quarter US earnings season draws near.
Strong demand for AI and data centers continues to be a major market theme, with energy and technology firms predicted to lead the increases.
