Ed Yardeni cuts his S&P 500 year-end target to 7,900, citing valuation pressure from rising bond yields, while emphasizing that strong corporate earnings growth keeps the long-term bull case intact.
Yardeni trimmed his year-end S&P 500 target from 8,400 to 7,900 citing 10-year yields near 5% compressing valuation multiples despite strong earnings growth.
SPY closed down 2.4% over the past month as the index target cut reflects multiple compression pressure.
NVDA holds nearly 8% of SPY and is central to the AI earnings leverage argument, but the article does not change its fundamental outlook directly.
VIX at 17.20 indicates repricing without panic as the market digests the target cut and Fed signals.
Strategist Ed Yardeni has lowered his year-end S&P 500 target from 8,400 to 7,900, citing valuation compression caused by 10-year Treasury yields hovering near 5%. Despite the target reduction, Yardeni maintains a bullish long-term outlook, noting that robust corporate profit growth of nearly 23% year-over-year remains a strong fundamental support for the market.
Yardeni lowered the target because 10-year Treasury yields near 5% are compressing valuation multiples, meaning investors are paying less for each dollar of corporate earnings.
No, Yardeni maintains that 7,900 would still represent a record high for the index, framing the move as a timing adjustment rather than a change in the long-term bullish trajectory.