Tough Earnings Ahead as Rates Pressure Stocks

The upcoming third-quarter earnings season is expected to be more challenging for Wall Street due to higher bond yields and the Federal Reserve's efforts to combat inflation.

Major US banks, including JPMorgan, Wells Fargo, Citigroup, and Goldman Sachs, are set to kick off reporting on October 14th, marking the beginning of a difficult period.

The S&P 500 posted its third losing week in four, while the Nasdaq achieved back-to-back weekly gains and reached an intraday record driven by AI and tech stocks.

Investor Jim Cramer warned that stock picking is becoming harder, even if gains are still possible, due to rising rates and a Fed committed to bringing down inflation.