Market valuations have shown signs of cooling, with the S&P 500 forward price-to-earnings (P/E) ratio declining to 18x, the lowest level since late 2023. The trailing 12-month P/E ratio for the S&P 500 stands at 23.6, which is below its five-year average of 24.7 but above the ten-year average of 22.3. In terms of earnings, the S&P 500 is reporting year-over-year earnings growth of 7.3% for the first quarter of 2025, slightly above the estimate of 7.2% made on March 31. Additionally, the P/E ratio for the S&P 500 Information Technology Sector has decreased to 21.5x, marking the lowest figure since early 2023. Despite a rise in bond yields and unchanged economic impacts from tariffs, equities are still reflecting high expectations, with a forward 12-month P/E ratio of 19.0, which is below the five-year average of 19.9 but above the ten-year average of 18.3.