'Not the time to be skittish': Why Wall Street sees stocks rising by year-end

Between strong, AI-driven earnings and favorable historical trends in midterm election years, Wall Street strategists see tailwinds for stocks heading into year-end, even as bond yields hang near 24-year highs. "The path of least resistance into year-end is higher," Truist chief investment officer Keith Lerner said. Wall Street expects S&P 500 (^GSPC) earnings to jump 30% year over year, with major banks set to kick off what could be a blockbuster quarterly reporting season. Bubbling worries over the AI trade, including the risk of a slower pace or spending, have weighed on tech valuations. The Technology sector (XLK) now trades at a price-to-earnings ratio of around 21, down from roughly 35 at this time last year, Lerner noted.