Narrowing Earnings Beats Test S&P 500 Valuation

S&P 500 earnings growth remains strong, but average beats have narrowed and companies are being punished for weak signals. Tech and energy lead reported beats; the 17.7 forward P/E was below its five-year average, though rates, margin pressure, and AI capex payback could challenge the outlook. Watch estimates, costs, cash-flow conversion, and guidance.