Yardeni sees better stock buying opportunities after midterm elections

Ed Yardeni reiterated his caution on the U.S. Stock market, noting that while some buying opportunities exist, better entry points are likely to emerge after the November 3 midterm elections. The analyst’s main concern remains a potential escalation of the Middle East war, which could push oil prices above their earlier peak of $120.

The S&P 500 is up 11.4% year-to-date, but market breadth remains weak with only 37.8% of companies outperforming the index. Recent rotation saw Energy and Health Care sectors lead gains, while Communication Services and Industrials declined. Meta led the latest drop in AI-related stocks, falling 9.4% last week following its earnings report.

Forward earnings for the S&P 500 rose to a record $414.41 per share during the week of October 22, converging on the 2027 consensus estimate of $424.56. Despite strong earnings growth, valuation multiples have compressed, with the S&P 500 forward price-to-earnings ratio falling 13.5% year-to-date to 18.6.

Read the full story at yardeniquicktakes.com.