US stocks face Q4 tests from bond yields, midterms, earnings
As the fourth quarter begins, US stocks face threats to their typical seasonal strength from rising bond yields, midterm elections, and the market's dependence on AI spending.
Investors are entering a period that is usually favorable for US stocks, but that seasonal tailwind faces a series of pressures, including a jump in bond yields and the market's apparent reliance on heavy AI spending. As the fourth quarter begins, those factors are adding to the usual mix of risks from the midterms and earnings season.