New York (CNN) — Hopes for avoiding a recession are growing on Wall Street. Now, investors are looking for the coming earnings season to support that optimism.
Companies in the S&P 500 reporting third-quarter results are expected to have posted a 3.7% rise in profits from the prior year, according to FactSet estimates. That would mark the fifth consecutive quarter of earnings growth.
The S&P 500 index has gained roughly 21% for the year, notching dozens of record highs along the way as artificial intelligence enthusiasm helps drive stocks higher. Rising confidence that the US economy will achieve a soft landing, or a scenario in which inflation comes down without a recession, has also helped boost stocks in recent months.
Now, investors are looking to the upcoming earnings season for clues about the US economy’s health. Recent data has suggested that the US economy is still on strong footing. Job gains in September blew …