Zhi Tong Cai Jing·2025-09-16 10:52Group 1 - The S&P 500 index has raised concerns among investors about potential bubbles due to high valuations, primarily driven by the technology sector, with five large tech stocks contributing half of the index's 12% gain year-to-date [1] - The profit growth of these tech giants has outpaced their stock price increases, suggesting that their high valuations may be justified, while other sectors appear overvalued [1][2] - Excluding the tech sector, the S&P 500 index has risen 13% over the past year, but profits have only increased by 6.4%, indicating a disparity between stock performance and earnings growth [1] Group 2 - The expected P/E ratio of the S&P 500 index exceeds 27, a level typically seen in extremely bullish markets, with notable high valuations in non-tech stocks [2] - Major tech companies like Nvidia, Microsoft, Meta, and Alphabet have seen a 7.9% decrease in their P/E ratios for 2025, while their stock prices rose by 18%, supported by a projected 20% profit growth over the next 12 months [2] - Concerns about long-term valuations persist, with the S&P 500 index rising 83% since the 2022 bear market low, while earnings have only grown by 16% [7]