Here comes third-quarter earnings season. Booming profits could propel the S&P 500 to new heights

Third-quarter earnings season kicks off this week and as results roll in they should reveal what the market is eagerly anticipating: another blockbuster quarter for S&P 500 profits. The market closed at record highs Tuesday as investors bet that AI capex — a major force for the markets and economy — won't be derailed by higher bond yields. Assuming upbeat guidance from key companies — along with a little help on the bond side — earnings could propel stocks to a strong finish for the year. At the index level, profit growth should be stellar. Analysts expect nearly 30% year-over-year earnings growth for the S&P 500, according to consensus estimates compiled by FactSet. That forecast is up from 26.7% on June 30th.