Corporate earnings-led rally enters key phase as US investors brace for next week

U.S. equity markets remain resilient ahead of a busy week of third-quarter earnings that will test whether recent tech-led gains can broaden across sectors. The forward price-to-earnings ratio on the S&P 500 has climbed to levels last seen during the dot-com era, prompting caution from strategists. Meanwhile, investors are watching whether the strong momentum in AI and growth stocks can be sustained when more cyclical companies report, and how a less-accommodative central bank might affect valuations.