Market Extra

By Chris Matthews

Published: May 6, 2020 3:14 pm ET

The S&P 500 index is trading at more than 22 times forward earnings

U.S. stocks are trading at pricier valuations relative to corporate profits than at any point since the dot-com bubble in 2000 and these measures are flashing warning signs even when completely ignoring the short-term impact of the COVID-19 epidemic and instead focusing on next year’s economy, analysts warn.

As S&P 500 index SPX-0.56%  firms continue to report first-quarter earnings, investors have taken in stride management’s unwillingness to provide guidance on future performance, given the uncertainty the coronavirus pandemic has created around the economy. Such an environment, along with unprecedented fiscal and monetary stimulus, has allowed the large-cap index to trade