The streak is alive
The Nasdaq Composite and the S&P 500 are cruising toward double-digit gains for the fourth year in a row — a feat we haven’t seen since the late 1990s. That’s the kind of run that makes investors feel clever, brave, and maybe just a little bit invincible.
Enter the rate monster
Of course, markets love a good plot twist, and rising rates are lining up to be the one. Higher rates tend to make stocks less cozy by raising borrowing costs and putting pressure on the valuations of fast-growing companies — aka the exact names that helped power a lot of this rally.
Why you should care
If you own index funds, mega-cap tech, or anything that’s been riding the AI wave, this is your reminder that a great year doesn’t mean a smooth finish. When rates climb, the market often has to decide whether it’s still in celebration mode or whether the music just got turned down a notch.
Big picture: the market’s having a strong year, but the fourth quarter may ask investors to earn those gains the hard way.