S&P 500 PE Slides to 22

S&P 500 hit record highs while forward PE ratio fell from above 23 in October to about 22.
The PE compression is driven by temporary profit boosts from AI infrastructure spending and higher energy earnings linked to the Iran conflict.
Citigroup’s Scott Chronert notes PEG ratios for the eight biggest tech and AI stocks are most attractive since 2013, suggesting valuation appeal.
Analysts warn gains could evaporate if AI data‑center spending slows or peace deal stabilises oil supplies, making cheapness fleeting.