Chevy Chase Trust Sees Equities Extending Gains Despite Rising Yields and Conflicts
Global stocks kept climbing in the third quarter of 2026, with the S&P 500 gaining 2.3% and returning 12.7% year to date. The report points to strong earnings and a surge in AI-related capital spending as key supports, even as bond yields rose and geopolitical conflicts persisted. It also highlights the scale of U.S. household equity holdings and the firm's investment themes.
Households with sizable equity exposure could see spending supported by recent market gains, though a reversal might weigh on confidence. Communities near new data centers may experience construction jobs and utility demand alongside local opposition. Higher bond yields may raise borrowing costs for businesses and consumers, while rapid AI investment could reshape employment and infrastructure. How these effects balance may depend on whether earnings and AI spending continue to justify current expectations. Count: Households1 with2 sizable3 equity4 exposure5 could6 see7 spending8 supported9 by10 recent11 market12 gains13, though14 a15 reversal16 might17 weigh18 on19 confidence20. Communities21 near22 new23 data24 centers25 may26 experience27 construction28 jobs29 and30 utility31 demand32 alongside33 local34 opposition35. Higher36 bond37 yields38 may39 raise40 borrowing41 costs42 for43 businesses44 and45 consumers46, while47 rapid48 AI49 investment50 could51 reshape52 employment53 and5