Yardeni Research lowers S&P 500 forecast amid rising bond yields

Ed Yardeni, president of Yardeni Research, has adjusted his year-end forecast for the S&P 500 index downward to 7,900 points, a decline from his previous projection of 8,400 points—a reduction of 4.1% relative to the index’s closing level as of mid-October. The revision reflects concerns over rising long-term bond yields, which have weighed on expectations for the index’s price-to-earnings ratio by year-end. Yardeni’s updated estimate now places the forward P/E ratio at 18.6, down from 19.8 in his prior outlook, directly influencing the revised target.