VOO Drops 7% From January High Amid Market Pullback
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- VOO dropped 7% from its all-time high as of March 30, in the first significant S&P 500 pullback in roughly a year
- S&P 500 earnings are expected to grow 13% year-over-year in Q1 2026 — potentially the 6th consecutive quarter of double-digit growth — with full-year growth projected at 17% for both 2026 and 2027
- The S&P 500 is now trading at a forward price/earnings multiple of 19, the first time it has reached that level in roughly a year
- The Iran War is identified as the single biggest driver of stock market volatility in 2026, having pushed oil prices higher, raised inflation expectations, and effectively taken a Fed rate cut 'almost completely off the table'
- Signs of a near-term resolution to the Iran War, including a possible Strait of Hormuz reopening, could serve as a bullish catalyst for stocks, per the source
- Pullbacks of 5%–10% in the S&P 500 typically occur about once a year on average, putting the current 7% decline on a normal historical schedule
Why it matters: The article pitches the 7% VOO drop as a buying opportunity, but it also concedes the Iran War has removed Fed rate cuts from the table and pushed inflation expectations higher — bearish headwinds the bullish thesis doesn't fully resolve. Investors considering entry are implicitly betting that projected 17% earnings growth in 2026 will overpower those macro pressures and that a war resolution materializes soon.
