Geopolitical risk + higher yields after jobs data vs earnings reporting season and support for high valuations
Fed still seen cutting rates in Nov but by 25bps rather than the market fantasy of 50bps
NEW YORK, Oct 4 (Reuters) – A high-stakes corporate earnings season kicks into gear next week, with bullish investors hoping results will justify increasingly rich valuations in a U.S. stock market near record highs.
The case for strong U.S. economic growth got a boost on Friday, after labor market data came in far above expectations. The S&P 500 is up 20% year-to-date and stands near record highs despite recent tumult spurred by rising geopolitical tensions in the Middle East.