Why Stocks Are Defying Gravity and What Could Bring Them Down

Investors in the stock market are facing a protracted war in Iran, rising oil prices and a bond sell-off that could elevate borrowing costs across the economy.

And yet they are unfazed.

The benchmark SP 500 index is up nearly 13 percent this year, and some analysts expect the market to end the year even higher.

What’s propping up investor optimism right now is a strong earnings season and enthusiasm around artificial intelligence, helping to overcome fears of inflation and the impact of rising interest rates.

But those gains may waver as markets wade through September, a month when, historically, stocks fall. There are also risks to the rally as interest rates keep rising and concerns about runaway spending on A.I. data centers mount.

Article source: https://www.nytimes.com/2026/09/08/business/stock-market-interest-rates.html