S&P 500 Poised for Further Rally in H2 2026 Despite High Valuations, Says ClearBridge

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According to ClearBridge Investments, the S&P 500 is expected to extend gains in the second half of 2026 despite elevated valuations, supported by robust earnings growth. On July 8, the global asset manager, which oversees approximately $196 billion in assets, noted that the S&P 500's price-to-earnings ratio exceeds 20x, now considered a post-pandemic norm. The firm highlighted that forward 12-month earnings per share estimates have surged 155% since the pandemic. ClearBridge also cited supportive macroeconomic factors, including a stable labor market that created an average of 111,000 jobs monthly in Q2 2026, and declining oil prices that have pushed U.S. gasoline below $4 per gallon, strengthening consumer purchasing power.
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