The S&P 500 rose more than 1% after analysts raised their earnings growth forecast for the third quarter of 2026. Near-term moves have also been influenced by the index's relationship with its moving averages and recent resistance levels.
The S&P 500 index closed 1.05% higher. Improving corporate earnings outlooks ahead of the upcoming earnings season helped improve market sentiment.
The consensus forecast for third-quarter 2026 EPS growth among S&P 500 constituents rose to 28.7%. Analysts have raised their EPS forecasts by an average of 1.4% since 30 June. These moves reflect a reassessment of expectations ahead of the earnings season.
Technically, the S&P 500 is trading at 7,631, below its 20-day moving average of 7,661 but above its 50-day and 200-day moving averages. Near-term upside is at 7,646, downside is at 7,619, and 7,662 is acting as the nearest resistance level. Momentum is mixed, with oversold signals emerging.
Looking ahead, Federal Reserve rate hikes could limit further upside, while the probability of a decline over the next week is estimated at 58%.