The S&P 500’s forward price-to-earnings ratio has fallen below where it began 2026, even as the index rides a bull market. Truist chief market strategist Keith Lerner notes that strong earnings growth is compressing the multiple, with the index tracking toward back-to-back quarters of above 20% earnings growth. The estimated year-over-year earnings growth rate for the second quarter is 23.3%, above the five-year average of 16.4% and the 10-year average of 10.3%, according to FactSet. If actual growth hits that mark, it would be the second straight quarter above 20% and the seventh consecutive quarter of double-digit growth. Ten of the 11 S&P 500 sectors are expected to report year-over-year earnings growth, led by Energy, Information Technology, and Materials.