(Oct 13) : A selloff in chipmakers left stocks wavering ahead of the earnings season, with traders also gearing up for this week’s inflation data that will be key in shaping the Federal Reserve outlook.

The group of chip giants posted its longest retreat since July, weighing on the S&P 500 despite gains in most of its firms. While trading volume in US equities was the lowest in 2026, the stock benchmark remained near a record as bets on solid corporate results defied elevated oil prices and bond yields. Treasury futures fluctuated, with the cash market closed for Columbus Day.

Wall Street’s equity bull run completed its fourth anniversary, with the S&P 500 up nearly 120% from the 2022 bottom. And investors are bracing for high-stakes corporate results that will be crucial to sustaining the rally. Profit resilience helps explain why stocks have remained so strong, said Bret Kenwell at eToro.

“Growth has been powerful enough to keep valuations in check and allow investors to look past higher yields, interest rates and inflation,” he added. “Another strong quarter could reinforce the bull narrative intact into year-end, while a disappointment could catalyze a broader pullback.”

While this week’s inflation data could be a near-term volatility trigger, the new earnings season may play a bigger role in shaping the market’s momentum into year-end, according to Chris Larkin at E*Trade from Morgan Stanley.

“Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season,” said Goldman Sachs Group Inc. strategists led by Christian Mueller-Glissmann. They raised their three-month view on stocks to overweight.

The earnings season gets underway Tuesday, when Goldman Sachs, JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. report results. Bank of America Corp. and Morgan Stanley’s figures are due on the following day.

S&P 500 firms are estimated to post a 25% jump in third-quarter profits compared with a year earlier, data compiled by Bloomberg Intelligence show.

Meantime, Wednesday’s consumer price index is likely to be the most-important data the Fed will see before its October meeting, according to Glenmede’s Jason Pride and Michael Reynolds. Barring a stronger-than-expected report, the central bank will probably take a patient approach to its next rate hike, they added.

Fed Bank of Cleveland President Beth Hammack said smaller, more frequent adjustments to policy can help inflation expectations remain anchored, but she stopped short of backing a rate increase this month.

uploaded by Isabelle Francis