Legacy Insights — September 2026
The Market Lens
As summer comes to a close, the market continues to give investors reasons for optimism — even as interest rates, inflation and geopolitical uncertainty remain part of the conversation.
One of the strongest arguments supporting the market today continues to be corporate earnings. Second-quarter results were exceptionally strong, and expectations for the third quarter remain positive. According to Zacks Investment Research, S&P 500 earnings are currently expected to grow more than 22% year-over-year in the third quarter, with positive earnings growth anticipated across the majority of sectors. Just as importantly, earnings momentum is beginning to broaden beyond the technology companies that have dominated market leadership over the last several years.
That broadening is something we have been watching closely. Technology and artificial intelligence remain important long-term themes, but a healthy bull market does not need to be driven by only a handful of companies. Stronger participation from other sectors, along with small- and mid-sized companies, could provide additional support as we move toward the final months of 2026.
Beyond the Balance Sheet
While earnings provide reasons for optimism, the interest-rate picture remains complicated.
Brian Wesbury, Chief Economist at First Trust, recently highlighted the message coming from the bond market. Long-term Treasury yields have moved higher even as investors debate what the Federal Reserve should do next. Rather than viewing every movement in rates as a prediction about the Fed's next decision, we believe the bond market is reminding investors that inflation, economic growth, government borrowing and fiscal policy all matter.
At the same time, recent inflation data has shown some moderation, while employment data has softened. That leaves the Federal Reserve with competing considerations as it approaches its September meeting: controlling inflation without unnecessarily slowing economic growth.
For investors, this is exactly why we believe portfolio construction matters more than trying to predict the Fed's next move. We remain focused on diversification, quality, appropriate fixed-income positioning and making sure the amount of risk in each client's portfolio matches their financial plan.
Strong markets don't eliminate uncertainty, and uncertainty doesn't necessarily mean weak markets. Earnings remain supportive, but valuations, interest rates and global events can still create periods of volatility. Rather than reacting to each headline, we believe the better approach is to remain disciplined and make changes when your goals, time horizon or financial circumstances change.
If the market's recent moves have you wondering whether your portfolio is taking the right amount of risk, please give us a call. We're happy to review your allocation, revisit your risk score and make sure your investments continue to align with your long-term goals.
Phil, Nick, and Wendy | Legacy Wealth Planning | 775-850-2500 | www.lwpreno.com
These views are those of the author, not of the broker-dealer or its affiliates. This material contains an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. All investments involve risk, including loss of principal. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Tracking #1167798