Investors eyeing Q3 earnings as hopeful forecasts dim -strategist

STORY: "On June 30, it was expected that the S&P 500 would show a ten-and-a-half percent increase in earnings for the third quarter on a year-over-year basis. Now that estimate is below three percent," Stovall said.

Wall Street's three major indexes rallied over 2.5% on Monday to start the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes amid historically hot inflation and fears of slowing economic growth.

All three major indexes ended a volatile third quarter lower on Friday on growing fears that the Federal Reserve's aggressive monetary policy will tip the economy into recession.