Equities and bonds climbed as diplomatic hopes for Iran lowered oil prices, with Schwab favoring intermediate corporate bonds over high-yield credit ahead of the Q3 earnings season.
Stocks climbed on US-Iran diplomatic hopes, erasing the S&P 500's monthly decline.
Oil prices fell on hopes for diplomatic efforts to end the war in Iran, easing inflation anxiety.
Bonds climbed alongside stocks as oil fell, easing inflation concerns.
Schwab's CIO finds intermediate corporate bonds attractive at current entry levels.
JP Morgan is noted as the first major bank to kick off earnings season on October 13, a potential catalyst for markets.
Schwab Asset Management's CEO discusses market outlook, expressing optimism about risk-on assets and economic expansion.
Schwab's CIO sees no need to take on high yield credit risk at this time.
The S&P 500 rallied to erase its monthly decline as cooling oil prices eased inflation fears. Schwab Asset Management CEO Omar Aguilar notes that while market breadth remains narrow, the firm maintains an optimistic outlook on economic expansion. Investors are now shifting focus toward upcoming Q3 earnings and trade-related volatility as the primary catalysts for the next market move.
Market volatility is primarily driven by trade-related headlines, oil price fluctuations, and uncertainty surrounding upcoming earnings and monetary policy.
Schwab views intermediate corporate bonds as attractive due to strong balance sheets and their ability to provide reliable income and diversification without the need for high-yield credit risk.