Will More Stocks Join the Party?

The S&P 500’s narrow rally could broaden as strong earnings growth overcomes interest-rate concerns across more sectors.

• At the start of third-quarter earnings season, the S&P 500 was just below the all-time closing high reached the previous week.
• Only 50.2% of S&P 500 constituents traded above their 200-day moving average as of October 9, 2026, versus 75% when the index last peaked.
• Technology stocks linked to the AI revolution have driven much of the recent advance, while healthcare, consumer goods and other sectors have been flat or lower.
• Investors are concerned that higher interest rates could weaken earnings growth, although Horizon argues that the rates mainly reflect economic strength rather than restrictive financial conditions.
• Robust earnings growth has remained widespread and is accelerating across the market, a development the authors believe investors may be underestimating.

Takeaway: If upcoming earnings confirm broad-based strength, more stocks could join the rally and support further gains in the coming months, although the current lack of breadth remains a warning sign.