S&P 500 Tops 7,750 for First Time in History Amid Valuation Concerns
The S&P 500 has reached an unprecedented milestone by topping 7,750 for the first time in U.S. stock market history.
This achievement comes after a nearly 130% surge since the beginning of 2020, and while it's exciting, it also raises concerns about soaring valuations.
The S&P 500 Shiller CAPE ratio, a benchmark valuation metric, has been higher than its current level only once before - in late 1999 and early 2000, just before the dot-com bubble burst.
Despite the risks, there's a case to be made that this time could be different due to robust earnings growth. FactSet reported that as of August 28, 2026, with 97% of S&P 500 companies having reported second-quarter 2026 results, 86% reported a positive EPS surprise.
Earnings are growing significantly faster than stock prices, and the S&P 500's forward price-to-earnings ratio now stands at 19.6, below its five-year average of 19.9.