The S&P 500 is brushing up against all-time highs again, which sounds great until you ask the uncomfortable follow-up: are consumers strong enough to keep this going? Prices are rich, expectations are full, and the next retail sales read will either add support under this market or tug a leg from the stool.
On July 15 the index was quoted near record territory at 7,572.40, up roughly 10.6 percent year to date, as reported by the Associated Press. Not exactly a market begging for bad news.
Valuations are not cheap. The forward 12 month P/E sits at 20.1, above the 5 year average of 19.9 and the 10 year average of 19.0, according to FactSet (Earnings Insight). If you are paying up for earnings, those earnings had better show up.
That is the test in front of us. If retail sales and consumer health look sturdy enough, the market can keep justifying these multiples. If not, we will be talking more about prices than profits.
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We współpracy z: https://cryptodaily.co.uk/2026/07/sp500-retail-sales-test-valuations
