Global stocks have stalled near record highs since mid-August, making third-quarter earnings critical for a year-end rally. Major U.S. banks including JPMorgan Chase & Co. and Goldman Sachs Group Inc. kick off reporting Tuesday, with S&P 500 profits estimated to jump 25% year-over-year per Bloomberg Intelligence. Analysts warn the bar is unusually high: companies must not only beat estimates but also raise full-year guidance and demonstrate margin durability.
AI-related stocks are expected to surge 47%, driving a third of S&P 500 profits, while Asian tech firms could see a 66% earnings jump. Yet recent results from Micron Technology Inc. and Samsung Electronics Co. drew tepid reactions despite strong beats, signaling investor fatigue. Meanwhile, hyperscalers Alphabet Inc., Amazon.com Inc., Microsoft Corp., Meta Platforms Inc. and Oracle Corp. are boosting power-grid and infrastructure outlooks through data-center spending.
Investors also watch consumer, industrial and bank sectors for signs of a broader economic recovery, with Morgan Stanley projecting a 14% median earnings rise for Russell 3000 stocks in 2026.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing