Ahead of earnings announcements gaining momentum this week, growing expectations that profit growth fueled by increased AI demand will reach around 30% are supporting US stocks, and a view is spreading that this will outweigh concerns over higher interest rates.
Earnings announcements by US companies for the July–September 2026 quarter begin in earnest this week. Against a backdrop of rising AI demand, profit growth at technology companies is expected to drive the market, with earnings improvements anticipated across the board.
Market participants believe the momentum behind earnings improvements will outweigh concerns over higher interest rates. A growing view holds that US stocks are poised to pursue new highs.
This week will see a succession of earnings announcements from major financial institutions, including Goldman Sachs and JPMorgan Chase, while attention is also turning to capital goods and materials companies, which are economically sensitive stocks. The performance of individual stocks such as Lockheed Martin and Dow is also a focus.
The view is gaining strength that growth prospects related to AI will drive improvements in corporate earnings, raising the possibility that the risk-on effect across the broader equity market will continue.