Citi says S&P 500 valuations are slightly above the reasonable range, while AI supports growth stocks
PANews, citing Zhitongcaijing, reported that Citi believes AI-related earnings expectations and changes in ownership structures have reduced U.S. equity valuations' sensitivity to rising interest rates. Its model shows that the S&P 500 current P/E ratio is 22.4 times, slightly above the reasonable range of 17.1 to 22.1 times.