Key facts
- S&P 500 nearing 8,000 points despite analyst skepticism.
- Third-quarter earnings growth for the S&P 500 is expected at 30.6% year-over-year.
- Excluding mega-caps, S&P 500 earnings growth is projected at 5% year-on-year.
- 62% of S&P 500 components trade below their 50-day moving averages.
The S&P 500 has approached 8,000 points since its midsummer rally, but skepticism remains about its ability to reach this milestone. Analysts point to rising oil prices, higher US 10-year Treasury yields, and uncertainty surrounding AI and the upcoming midterm elections as factors tempering optimism. Despite strong third-quarter earnings expectations, the market's advance is largely concentrated in a few mega-cap technology and energy firms, masking weaker performance in the broader index. Samsung Electronics' projection of over $80 billion in quarterly operating profit and TSMC's record quarterly profit were met with muted investor reactions, highlighting a growing caution.