The S&P 500 closed at 7,666.45 on October 1, 2026, up roughly 12% year-to-date amid record corporate profits driven by AI-related capital spending. Consensus estimates project 25-35% full-year EPS growth for 2026, the strongest pace since 2021, though analysts anticipate moderation to around 15% in 2027 as comparisons toughen. Higher Treasury yields, with the 10-year near 5.27-5.29%, and the federal funds rate at 3.75-4.00% after the Fed’s September hike create valuation pressure, while September PCE inflation held at 3.4% year-over-year. Traders are monitoring the upcoming jobs report and Q3 earnings releases for signals on labor-market resilience and whether AI momentum can offset rising borrowing costs and sticky prices.