By Lewis Krauskopf

NEW YORK, Oct 9 (Reuters) – Quarterly earnings reports from banks, along with inflation data and other economic releases next week, will offer US stock investors insight into the strength of corporate profits and the path of interest rates, two factors influencing the market’s rally.

On Tuesday, the S&P ‌500 hit an all-time closing high, its first since mid-August. Its year-to-date gain has swelled to more than 14%.

Wednesday’s Consumer Price Index report, perhaps the most ‌closely watched inflation gauge, is among the last key data releases before the Federal Reserve meets at the end of October to decide whether to raise interest rates. The Fed hiked rates last month for the ​first time since 2023 to try to contain inflation.

Banks including JPMorgan and Goldman Sachs will report next week, kicking off what is expected to be an exceptionally strong quarter overall for US corporate profits. Following a robust first half, S&P 500 earnings are expected to have jumped by more than 30% in the third quarter, according to LSEG IBES.

“Earnings have been incredible this year, and we’re just going to have to start to see with the banks how Q3 shaped up,” said Matthew Miskin, co-chief investment strategist at Manulife John Hancock Investments.

BANKS TO GIVE ‌VIEWS ON CONSUMER, CAPITAL MARKETS

JPMorgan, Goldman, Citigroup and Wells Fargo ⁠will report results on Tuesday. Morgan Stanley and Bank of America are set to report the following day, rounding out reports from the six largest banks.

Banks typically kick off quarterly earnings season, and the reports offer important views into the health of the overall US economy.

Matt ⁠Stucky, chief portfolio manager of equities at Northwestern Mutual Wealth Management, said he would focus on how higher interest rates are rippling through to capital markets and consumer spending.

“We’ve seen rates back up. We’ve seen energy costs back up,” Stucky said. “And the question is, how is this impacting the consumer?”

Heading into the reports, bank stocks have been among the worst-performing groups recently amid a rise ​in ​Treasury yields, with the S&P 500 banks index down 7.5% in the past month.

“Is the market sniffing ​out something that is underneath the surface for these financial companies?” ‌Miskin said. “I think there’s going to be a sigh of relief if these financial services companies come out with good results next week.”

Other earnings reports next week include healthcare companies Johnson & Johnson and UnitedHealth Group, and asset manager BlackRock.