Q3 2026 Market Review: Why Did Stocks Advance Amid Rising Rates?
Corporate earnings and continued economic expansion helped global stocks advance modestly in Q3 2026, even as rising interest rates and renewed Middle East tensions created more challenging conditions. Bonds declined as strong economic activity, persistent inflation, and renewed energy pressures contributed to higher yields and expectations for tighter monetary policy. The Federal Reserve raised its policy rate in September, and longer-term bonds generally posted larger losses.
Beneath the headline results, stock-market participation remained uneven. AI-related demand supported technology stocks, and higher oil prices benefited energy companies, while U.S. small-company stocks declined. Municipal bonds faced additional selling pressure and supply-and-demand imbalances, pushing prices lower despite generally solid state finances.
Our Q3 2026 Market Review examines how stocks and bonds performed, what drove those results, and how market performance differed across regions and market segments. Download the report for a closer look at the quarter across global markets.
Download the Q3 2026 Quarterly Market Review
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