Why Stocks Could Defy Higher Rates & Keep Rallying: ETFs to Watch

The stock market rally is expected to continue through year-end, driven by strong earnings growth, positive seasonal trends, post-midterm election relief, and massive AI infrastructure spending. S&P 500 earnings are projected to grow 23.9% year-over-year in Q3, while historical data shows an 89% success rate for gains from September through December when the index is up more than 10% through August. Rising bond yields reflect economic strength rather than inflation concerns, and Q4 holiday retail sales are projected to exceed $1 trillion for the first time.