US Stocks Are Ripe for Earnings-Led Rally as Rates Angst Settles
- S&P 500 valuation back near long-term average after turmoil
- Options market shows traders don’t see earnings as risk event
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A robust earnings season could be all it takes to fuel a year-end rally on Wall Street, eclipsing recent jitters from geopolitical tensions.
Having endured a turbulent summer amid worries about higher-for-longer interest rates, the S&P 500 Index has been drifting lower since hitting a July peak, bringing valuations closer to long-term averages. With analysts ramping up their earnings estimates and bond yields starting to retreat from 16-year highs, it leaves scope for gains.