History tells us that markets are usually flat in the run-up to midterm elections. Can strong earnings continue to power the market through the election and beyond? On this episode, host Mike Townsend is joined by Joe Mazzola, Schwab's head trading and derivatives strategist, for a conversation about whether history still offers a useful guide to a market that has repeatedly defied it in 2026. Joe shares how an unusually strong earnings backdrop—with revenue, profit, and margin growth rising together—has powered the rally, and why a higher bar for future results could make those gains harder to repeat. He also unpacks how turmoil in the bond market is impacting equities and how the market is thinking about a possible Fed rate hike. And he shares practical approaches investors can consider to manage short-term volatility heading into the election and where investors seeking genuine diversification might look for opportunities.

Mike also provides his thoughts on the latest developments in Washington, including a preview of next week's Fed meeting, how Congress has staved off—for now—a government shutdown, and the implications of the national debt passing the $40 trillion mark.

WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit schwab.com/WashingtonWise.

If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.

DISCLOSURES

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned are not suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Past performance is no guarantee of future results.

Investing involves risk, including loss of principal.

All names and market data shown are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.

Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

Futures and futures options trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure Statement for Futures and Options: https://www.schwab.com/Futures_RiskDisclosure] prior to trading futures products.

Indexes are unmanaged, do not incur management fees, costs, and expenses (and/or "transaction fees or other related expenses"), and cannot be invested in directly. For more information on indexes, please see ​schwab.com/indexdefinitions

0926-556U

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Congress may be heading out the door for its annual summer recess, but there is still plenty going on in Washington that could affect markets and portfolios. Host Mike Townsend dives into why the Federal Reserve remains the most important policy story for investors, including this week's decision to hold interest rates steady, the committee's cautious approach to inflation, and new Chair Kevin Warsh's plan for a major overhaul of how the Fed operates. He also discusses how the ever-evolving tariff regime is creating planning challenges for companies; how AI regulation and public resistance to data centers are emerging as key issues for this booming industry; the Bureau of Labor Statistics focus on ensuring the integrity of economic data; and efforts by Congress to avoid a pre-election government shutdown. Plus, Mike shares his outlook for the highly competitive midterm elections and why he thinks split control of Congress is the most likely outcome.

WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit schwab.com/WashingtonWise.

If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts

DISCLOSURES

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned are not suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Past performance is no guarantee of future results.

Investing involves risk, including loss of principal.

Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

All names and market data shown are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Indexes are unmanaged, do not incur management fees, costs, and expenses <(and/or "transaction fees or other related expenses"),> and cannot be invested in directly. schwab.com/indexdefinitions.

0726-PRTS

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.