At the start of the week, around 20% of the S&P 500 companie...

At the start of the week, around 20% of the S&P 500 companies that had reported their second-quarter earnings, with 80% of them topping expectations, according to FactSet data. $S&P 500 Index (.SPX.US)$

Investors have largely priced in the chances of the Federal Reserve cutting interest rates at its September meeting. Combined with rising confidence in a soft landing, the market has continued its rally, with rate-sensitive sectors such as small caps and industrials rising in recent weeks. $Russell 2000 Index (.RUT.US)$

“You’re left with an economy that continues to grow, corporations that continue to manage the environment very, very well and a market that’s reflecting that in its elevated valuations,” said Solus Alternative Asset Management chief strategist and economist Dan Greenhaus.

Regarding the market rally, Greenhaus added, “As long as something doesn’t change on that front, I don’t know why I would be any more scared tomorrow or the next day that I’ve been over the previous eight, three months.”

On the earnings front, investors will be looking at $AT&T (T.US)$ , $General Dynamics (GD.US)$ and $Boston Scientific (BSX.US)$ ’s quarterly results Wednesday morning.