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The earnings season for U.S. companies is about to enter a crucial phase, with the market particularly focused on five key aspects: whether last quarter's profit growth can surpass the market's low expectations, whether profits can rebound, if earnings for AI giants will slow down, the prospects of a soft landing for the U.S. economy, and whether the presidential election will impede investment spending.

Analysts predict that the earnings for S&P 500 companies in Q3 will grow by 4.3% compared to the same period last year, marking the lowest increase in four quarters, down from 14% in Q2 and lower than the mid-June forecast of 8.

4%. However, Baird investment strategist Meifield noted that analysts tend to lower profit estimates as earnings season approaches, which could help companies exceed expectations and boost stock market performance.

Wall Street will also closely monitor profit levels, with S&P 500 companies' net profit margins expected to be around 12.9%, down from 13.1% in Q2. This indicates that some companies are struggling to pass on cost pressures, with energy and real estate sectors likely facing the most challenges.

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