The S&P 500 rose 2% in the third quarter of 2026 to close at 7,651.54 on September 30, the Nasdaq Composite gained 2.5% and the Dow Jones Industrial Average fell 2.7% [1]. Energy was the best sector with a 17.2% total return and utilities the worst at -12.4%, while the Russell 2000 small-cap index fell about 7.5% [3][6]. For the first nine months of 2026, the S&P 500 was up 11.8% on price, as analysts expected third-quarter earnings growth of 29.6% [2][5].
How did the stock market do in Q3 2026?
The quarter had two halves. Stocks rose through August, and the S&P 500 set an all-time high of 7,798.99 on August 13, 2026 [4]. After that, rising bond yields and oil prices held the index in a range: it fell as low as 7,551.81 before ending September near 7,650 [1][4].
| Index | Close Dec 31, 2025 | Close Sep 30, 2026 | Q3 2026 | September 2026 | Year to date |
|---|---|---|---|---|---|
| S&P 500 | 6,845.50 | 7,651.54 | +2.0% | -0.5% | +11.8% |
| Nasdaq Composite | 23,241.99 | 26,861.06 | +2.5% | +1.9% | +15.6% |
| Dow Jones Industrial Average | 48,063.29 | 50,906.05 | -2.7% | -4.3% | +5.9% |
| Russell 2000 | n/a | n/a | about -7.5% | more than -5% | more than +12% |
Source: CNBC market closes for September 30, 2026 and December 31, 2025 [1][2]; Russell 2000 changes as reported by CNBC on October 1, 2026 [6]. Year-to-date changes are price returns calculated from the closes shown and exclude dividends.
Including dividends, the S&P 500's total return was 2.3% in the third quarter, according to First Trust, citing Bloomberg data [3]. Breadth was weak: only 177 stocks in the index had outperformed it for the year through September 29, compared with 200 a year earlier [4]. On September 30, new 52-week lows outnumbered new highs on the New York Stock Exchange by 262 to 23, CNBC reported [1].
Which sectors won and lost in Q3 2026?
Only four of the S&P 500's 11 sectors had positive total returns in the third quarter [3]. The pattern followed oil prices and interest rates.
| Sector | Q3 2026 total return | Year to date (price, through Sep 29) |
|---|---|---|
| Energy | +17.2% | +37.5% |
| Information Technology | +7.2% | +27.1% |
| Health Care | +6.5% | +10.3% |
| Communication Services | +3.6% | +4.0% |
| S&P 500 | +2.3% | +12.1% |
| Materials | about -2.4% (price, through Sep 29) | not reported |
| Utilities | -12.4% | not reported |
Source: First Trust Portfolios, citing Bloomberg [3][4]. The S&P 500 year-to-date price figure is calculated from its September 29, 2026 close of 7,670.84 and its 2025 close [2][4]. The remaining sectors had Q3 total returns between +3.6% and -12.4% [3].
Energy: oil above $100
Energy stocks rose with crude. DataPorium data show Brent crude futures rose from $72.92 a barrel on June 30 to $103.53 on September 30, about 42%, as the war with Iran disrupted Persian Gulf shipping [9]. Exxon Mobil (XOM) shares rose 19.0% in the quarter and 35.2% for the year, according to DataPorium closing prices [7]. First Trust noted that energy had been the worst sector in the second quarter, down 13.5%, a sign of how closely it tracks oil [3].
Utilities and other rate-sensitive stocks: hurt by yields
Utilities fell 12.4% in the quarter after being the third-best sector in the first quarter [3][4]. Utilities borrow heavily and pay high dividends, so their shares compete with bonds; when the 10-year Treasury yield rose from 4.44% to 5.29% during the quarter, they lost appeal [8]. NextEra Energy (NEE), one of the largest US utilities, fell 13.7% in the quarter, DataPorium data show [7]. CNBC reported that financials fell 6.3% in September alone [1].
Technology and health care: earnings growth
Technology gained 7.2% and set a record on September 25 [3][4]. Analysts expected information technology earnings to grow 39.1% in 2027, versus 11.0% for materials and 9.6% for utilities, according to First Trust [4].
How did the biggest stocks perform?
Large technology companies diverged more than usual. The table uses DataPorium daily closing prices [7].
| Company | Close Jun 30, 2026 | Close Sep 30, 2026 | Q3 change | Year to date |
|---|---|---|---|---|
| Microsoft (MSFT) | $373.02 | $512.90 | +37.5% | +6.1% |
| Meta Platforms (META) | $563.29 | $725.18 | +28.7% | +9.9% |
| Apple (AAPL) | $289.36 | $333.02 | +15.1% | +22.5% |
| Nvidia (NVDA) | $200.09 | $228.38 | +14.1% | +22.5% |
| Amazon (AMZN) | $238.34 | $249.15 | +4.5% | +7.9% |
| Alphabet (GOOGL) | $357.37 | $344.08 | -3.7% | +9.9% |
| Tesla (TSLA) | $420.60 | $354.81 | -15.6% | -21.1% |
Source: DataPorium Stock Market, daily closing prices; changes exclude dividends [7].
Microsoft rebounded after a weak first half: its shares were still 22.9% below their 2025 close on June 30 and finished September up 6.1% for the year [7]. Meta rose 28.8% in September by midday on September 30, CNBC reported, after a positive reception for its first consumer AI agent, Muse [1]. Tesla was the weakest of the group, down 15.6% in the quarter [7].
Why did stocks hold up while yields rose above 5%?
Earnings kept rising faster than prices. FactSet reported on October 9 that analysts expected S&P 500 earnings to grow 29.6% from a year earlier in the third quarter of 2026, on revenue growth of 12.4%, which would be the third straight quarter of growth above 25% [5]. All 11 sectors were expected to report higher earnings, with energy expected to lead at 121.1% because the average oil price in the quarter ($85.68) was 32% above a year earlier [5].
Because earnings estimates rose faster than prices, valuations fell. The forward 12-month price-to-earnings (P/E) ratio, the index price divided by expected earnings for the next 12 months, was 19.1 on October 9, down from 20.4 on June 30 and equal to its 10-year average [5]. Since June 30, the index price had risen 3.5% while the forward earnings estimate rose 10.4% [5].
The pressure came from rates. The 10-year Treasury yield ended the quarter at 5.29%, up 0.85 points, and the Federal Reserve raised its target range to 3.75% to 4.00% on September 16 [8]. Higher yields raise the rate used to value future profits and make bonds more competitive with stocks, which hit small companies, utilities and real estate hardest [3][6].
The S&P 500 gained 2% in Q3 2026 while earnings estimates rose about 10%, so stocks became cheaper even as the index stayed near its record.
Frequently asked questions
How much did the S&P 500 gain in Q3 2026?
The S&P 500 rose 2% on price in the third quarter of 2026, closing at 7,651.54 on September 30 [1]. Its total return including dividends was 2.3% [3].
What is the S&P 500 return year to date in 2026?
From its 2025 close of 6,845.50 to its September 30, 2026 close of 7,651.54, the S&P 500 gained 11.8% on price [1][2].
What was the best performing sector in Q3 2026?
Energy, with a 17.2% total return, followed by information technology (7.2%) and health care (6.5%) [3]. Utilities were the worst at -12.4% [3].
When does Q3 2026 earnings season start?
By October 9, 2026, 19 S&P 500 companies had reported third-quarter results, and analysts expected earnings growth of 29.6% for the index [5]. The largest banks and technology companies report from mid-October through early November.
Sources & References
- [1] CNBC, S&P 500 falls Wednesday despite softer-than-expected inflation data; index posts losing September (September 30, 2026)
- [2] CNBC, S&P 500 closes lower Wednesday, but wraps 2025 with a 16% gain (December 31, 2025)
- [3] First Trust Portfolios, The Only Constant is Change (S&P 500 sector total returns, Q3 2026; October 8, 2026)
- [4] First Trust Portfolios, S&P 500 Index Sector Prices vs. All-Time Highs (October 1, 2026)
- [5] FactSet, Earnings Insight (October 9, 2026)
- [6] CNBC, Stock market news for Oct. 1, 2026
- [7] DataPorium Stock Market (daily prices of US-listed companies)
- [8] DataPorium Interest Rates (Treasury yields and Fed decisions)
- [9] DataPorium Commodities (Brent and WTI crude oil futures)
