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S&P 500: Valuation Pressure Builds, Yet Record Earnings Keep the Uptrend Intact

Investing.com Logo Investing.com By Ed Yardeni
S&P 500: Valuation Pressure Builds, Yet Record Earnings Keep the Uptrend Intact

The S&P 500 is experiencing a slower growth phase after reaching a record high in October, with valuation concerns offset by strong corporate earnings. The market is seeing a rotation from tech and discretionary sectors into healthcare and consumer staples, while maintaining an overall positive outlook for 2026.

Insights
MAGS   neutral

Forward P/E has dropped from 31.0 to 28.1, indicating potential valuation challenges and investor uncertainty about GPU chip accounting