The US stock market reached a new high, and investors set their sights on US companies that are beginning to report results to find rationality for their bets on a soft landing in the economy. The S&P 500 index traded modestly but rose nearly 1% to 5859.85 points. The index hit a new high for the 46th time this year, which shows that investors were not deterred by lower expectations for the third quarter; instead, they are betting that this earnings season will bring another surprise. According to the data, strategists predict that S&P 500 companies will announce their weakest performance in four quarters, with a year-on-year increase of only 4.3%, although corporate forecasts suggest a sharp rise of about 16%. This robust outlook indicates that businesses can easily exceed market expectations. “Wall Street recently underestimated American businesses,” said Callie Cox of Ritholtz Wealth Management. “This environment is difficult to interpret, and I don't blame anyone who is skeptical about this wave of markets. We still think the biggest and most expensive risk is to miss a rebound and eventually lose touch with the market”.

The US stock market reached a new high, and investors set their sights on US companies that are beginning to report results to find rationality for their bets on a soft landing in the economy. The S&P 500 index traded modestly but rose nearly 1% to 5859.85 points. The index hit a new high for the 46th time this year, which shows that investors were not deterred by lower expectations for the third quarter; instead, they are betting that this earnings season will bring another surprise. According to the data, strategists predict that S&P 500 companies will announce their weakest performance in four quarters, with a year-on-year increase of only 4.3%, although corporate forecasts suggest a sharp rise of about 16%. This robust outlook indicates that businesses can easily exceed market expectations. “Wall Street recently underestimated American businesses,” said Callie Cox of Ritholtz Wealth Management. “This environment is difficult to interpret, and I don't blame anyone who is skeptical about this wave of markets. We still think the biggest and most expensive risk is to miss a rebound and eventually lose touch with the market”.