U.S. stocks enter the final quarter with a mildly bullish setup, helped by favorable seasonality, resilient corporate earnings and continued enthusiasm around artificial intelligence spending. The S&P 500 remains close to record territory, and expectations for solid profit growth could keep investor sentiment constructive.

Still, the path higher may not be smooth. Elevated Treasury yields are pressuring valuations and raising borrowing costs, while investors are also watching Federal Reserve policy and geopolitical developments. Even so, recent market action suggests that equities are holding up well despite these headwinds.

With the S&P 500 still within reach of 8,000 by year-end 2026, the broader tone remains cautiously positive. In…