Wall Street’s week ahead: Bank earnings, CPI headline busy markets week as S&P 500 hovers near records — SkimNews
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- S&P 500 hit an all-time closing high on Tuesday — its first since mid-August — pushing year-to-date gains above 13%, though the index slipped on Wednesday and Thursday
- Six major U.S. banks report next week, with JPMorgan, Goldman Sachs, Citigroup and Wells Fargo on Tuesday followed by Morgan Stanley and Bank of America on Wednesday, kicking off earnings season
- S&P 500 Q3 earnings are expected to jump more than 30% year-over-year, according to LSEG IBES, following a robust first half
- Bank stocks have been among the worst-performing groups recently, with the S&P 500 banks index down 9% in the past month amid rising Treasury yields
- The September CPI report Wednesday is forecast to show a 3.6% year-over-year rise, with core inflation at 2.5% versus the Fed's 2% target
- Treasury yields remain elevated, with the benchmark 10-year yield near 5.23% after recently hitting its highest level in 24 years
- Traders have dialed back expectations of another Fed rate hike at the Oct. 27-28 meeting, but a hot CPI print could revive those bets
Why it matters: The megabanks' reports will be the first window into whether higher rates are cracking consumer spending and capital-markets activity, with the sector already down 9% in a month despite the broader index at record highs — a divergence investors say can't last forever.
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