Rising Treasury yields compress P/E multiples across S&P 500, tech stocks hit hardest

The 10-year yield hit a 24-year high above 5.36% before settling at 5.276%. The S&P 500 forward P/E has fallen from 22.2x in January to 19.3x. Nvidia's multiple has dropped sharply. The equal-weighted S&P 500 is down 5% since August, while the cap-weighted index is near records, driven by a handful of mega-cap tech names. Earnings strength has offset some of the valuation compression, but the bar for future gains is higher.