US stocks are entering the fourth quarter with historically favourable seasonal trends, but rising bond yields, elevated market valuations and growing dependence on massive artificial intelligence spending could challenge further gains, according to a report by Reuters.
The benchmark S&P 500 had gained nearly 13% in 2026 through Friday and was about 1% below its record high reached in mid-August, according to Reuters. Investors now face a packed final quarter, with the third-quarter earnings season, a key Federal Reserve meeting and the November 3 US midterm elections all likely to influence market direction.
