Live Markets: As S&P 500 trades near record, its PE looks cheap

Ameriprise Financial

15/04/2026 18:10

Nasdaq up ~0.9%, S&P 500 rises ~0.4%; Dow off ~0.4%

S&P 500 on track for record close >6,978.60; flirts with 7,002.28 record intraday high

Tech leads S&P 500 sector gainers; Industrials weakest group

Dollar, bitcoin slip; gold lower; US crude up slightly

US 10-year Treasury yield rises to ~4.28%

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AS S&P 500 TRADES NEAR RECORD, ITS PE LOOKS CHEAP

The S&P 500 is flirting with record highs, but the benchmark still looks cheap, at least according to one measure, despite uncertainty created by the ongoing war in Iran that has led to the effective closure of the Strait of Hormuz.

With first-quarter reporting season kicking off, the S&P 500 is trading at about 20.1 times expected earnings, down from a recent high of over 23 in November.

The benchmark's PE has ticked up from as low as 19.4 last week, but it remains very close to its 10-year average of about 19. The last time the S&P 500 traded at these levels was a year ago, when global markets briefly tanked following U.S. President Donald Trump's Liberation Day tariff announcements.

How can it be that the S&P 500 is once again at record highs, while its forward PE remains so low? Put it down to earnings optimism. Analysts on average see S&P 500 companies growing their earnings 19.3% in calendar 2026, according to LSEG data. That is up from an estimate of 15.6% at the start of 2026.

Among the sectors that have seen big analyst revisions for 2026 earnings are energy, thanks to the Middle East conflict, along with materials and tech.

(Noel Randewich)

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S&P 500's forward PE still low as stocks surge https://fingfx.thomsonreuters.com/gfx/mkt/gdvzabdbxpw/Pasted%20image%201776271614647.png