S&P 500 Earnings Yield Now 5%; A Quick Take On Google's Earnings Report

The article argues that the S&P 500 remains supported by a favorable valuation setup, with the index’s earnings yield at 5.03% and its P/E ratio below 20x—levels the author says resemble late-March 2026, before a strong spring rally. The near-term focus for equities is expected to be the FOMC meeting and the upcoming earnings releases from Microsoft and Amazon. The piece also warns that S&P 500 EPS could be distorted by non-operating items, including Anthropic-related gains and potential mark-ups tied to Alphabet’s investments such as Waymo, YouTube, and SpaceX. Overall, the tone is constructive on the market backdrop, but it stresses the need to separate operating performance from one-time valuation gains when interpreting index-level earnings.