Ed Yardeni cut his year-end S&P 500 target to 7,900 from 8,400, blaming a 10-year Treasury yield near 5% for compressing valuation multiples rather than any deterioration in earnings. Yardeni, who had been making one of the loudest bullish calls on the Street, moved the old 8,400 target to mid-next year and noted that 7,900 would still print a record high. The 10-year Treasury sat at 5.01% and the 30-year at 5.35% on September 16, 2026, right in the zone Yardeni flagged as multiple-compressing, while the SPDR S&P 500 ETF closed at $754.13, down 2.4% over the past month but up 10.59% year to date. Yardeni said earnings are going to be fantastic, and total U.S. corporate profits reached $4.8 trillion in the second quarter with reported year-over-year growth of 22.8%, according to the Bureau of Economic Analysis. He reads the Summary of Economic Projections as the opening of a hiking cycle, with another move possible this year and one more next year, while the policy rate's upper bound stands at 3.75% and the 10-year minus 2-year spread has narrowed to 0.27%, its lowest in the past year.
NVIDIA CorporationThe 10-year Treasury yield sits at 5.01%, in the zone Yardeni flags as multiple-compressing, with the Fed seen opening a hiking cycle.
The 30-year Treasury yield stands at 5.35%, elevated alongside the 10-year as the Fed's hiking cycle begins.
