Index Rally Hits a Wall Amid AI Jitters as Key Valuation Metric Dips - State Street SPDR S&P 500

The S&P 500 slid to 7,530 on Friday, its lowest point since September 16 and about 4% below its all-time high, after hitting a key barrier near 7,830. The retreat gathered pace as “AI jitters” spread, even though corporate earnings momentum improved. FactSet data shows 60% of index companies have reported, with blended earnings growth of 30% versus 29% expected. The forward price-to-earnings ratio fell to 18.7, below 19.8 (five-year) and 19.1 (10-year). Next focus is further results from companies including Apple, Palantir, AMD, and Amgen.