SPX Valuation Earnings Disconnect
US equity valuations have decoupled from earnings fundamentals, with major market leaders lacking profits to justify their lofty prices
Too little corroboration in the last 3 days to call a trend (7 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"Stocks fell back from early gains on the weak US retail sales and consumer sentiment reports. The weak US economic reports reduced the odds of a September Fed rate hike to 29% from 35% but also sparked worries about a weaker US economy and weaker corporate earnings."
"I'm not sure a handful of earnings reports justifies new records in the S&P."
""I don't sense one ounce of scepticism among investors, from oil to interest rates to equities," said Jack Ablin, chief investment strategist and founding partner at Cresset Capital Management in Chicago. "The earnings reports were certainly supportive, and that's great news, but I'm not sure a handful of earnings reports justifies new records in the S&P.""
"Shares of Ryanair Holdings PLC (NASDAQ:RYAAY) fell more than 5% on Monday following weak first-quarter results. Ryanair reported quarterly earnings of $1.19 per share which missed the analyst consensus estimate of $1.35 per share."
"investors zoning in on the AI stock selloff, June's nonfarm payrolls miss, and the best quarter for the S&P 500 (SPX) since 2020"
"The earnings growth of the SPX—the most important stock—for 2025 has had no earnings at all. They had no profits, and in the first quarter they continued to have losses."
"The earnings growth of the SPX—the most important stock—for 2025 has had no earnings at all. They had no profits, and in the first quarter they continued to have losses."