S&P 500 Near Record High but at Lowest Valuation in a Year as Earnings Growth Outpaces Prices
The S&P 500 is trading near its all-time high but at its lowest price-to-earnings multiple in 12 months, as earnings growth from companies like Nvidia, Alphabet, and Amazon has outpaced stock price appreciation.
Key points
- S&P 500 near ATH but at lowest forward P/E in 12 months
- Earnings growth from Nvidia, Alphabet, Amazon outpacing stock prices (multiple compression)
- Earnings-driven rally structurally more sustainable than multiple-expansion rally
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Read the full analysis on market.news
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