Business · Economy · 1 day ago
Bank earnings and inflation data set to test US stock rally
The S&P 500 reached a record closing high this week and is up more than 13 per cent so far this year.
Next week, major US banks including JPMorgan, Goldman Sachs, Citigroup and Wells Fargo will report quarterly results.
Their results can offer clues about corporate profits, consumer spending and activity in financial markets.
Investors will also watch Wednesday’s consumer price index report, which measures changes in prices paid by consumers.
Inflation remains above the Federal Reserve’s 2 per cent target, and the bank raised interest rates last month for the first time since 2023.
The Fed is due to meet on October 27 and 28, and stronger-than-expected economic or inflation data could revive expectations of another rate increase.
Producer prices and retail sales reports are also due next week, adding to the picture investors will use to assess the economy and the stock market.
Major U.S. banks will report quarterly results next week, while inflation and other economic data are expected to influence views on corporate profits and interest rates.
JPMorgan, Goldman Sachs, Citigroup and Wells Fargo are scheduled to report on Tuesday, followed by Morgan Stanley and Bank of America on Wednesday.
The September consumer price index report is due Wednesday, ahead of the Federal Reserve’s meeting at the end of October.
The S&P 500 reached a record closing high on Tuesday, and its year-to-date gain has exceeded 13 per cent.
Analysts expect S&P 500 earnings to have risen by more than 30 per cent in the third quarter, according to LSEG IBES.
- Who
- Major U.S. banks, investors and U.S. stock markets. The Federal Reserve is also central to the interest-rate outlook.
- What
- Bank earnings and economic data, including the September CPI report, are expected to shape views on corporate profits and interest rates.
- When
- Next week, following the article’s publication on October 9, 2026. The Fed meets on October 27-28.
- Where
- United States.
- Why
- The reports may indicate the strength of corporate profits and the economy, and influence expectations for interest rates.
This story does not have two clearly opposing sides.
Earnings have been incredible this year, and we’re just going to have to start to see with the banks how Q3 shaped up.
And the question is, how is this impacting the consumer?
We really want to see material progress on [core services inflation] to get a little bit more confident that the Fed doesn’t have to be as aggressive as maybe the market’s pricing in.
The S&P 500 closed at an all-time high, its first such close since mid-August.
JPMorgan, Goldman Sachs, Citigroup and Wells Fargo are scheduled to report results.
Morgan Stanley and Bank of America are set to report, and the September CPI report is due.
The Federal Reserve is scheduled to meet to decide whether to raise interest rates.
- S&P 500 year-to-date gain
- More than 13 per cent
- Expected third-quarter S&P 500 earnings growth
- More than 30 per cent, according to LSEG IBES
- Expected September annual CPI increase
- 3.6 per cent, according to a Reuters poll
- Expected core CPI increase
- 2.5 per cent
- S&P 500 banks index
- Down 9 per cent in the past month
Sources
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