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And it has been expecting that for a long time. 5 years ago Apple's PE was below 12. Since then the stock price has tripled.

Now their PE is 18, so the market is expecting Apple to grow a lot faster in the next 5 years than it did in the last 5 years.

https://ycharts.com/companies/AAPL/pe_ratio

We'll see if the market gets it right this time or at least not as horribly wrong as in the past.

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The PE ratio of the entire stock market has increased by a lot during that period: http://www.multpl.com/table

You could say that everyone has higher growth expectations, or perhaps capital is just cheaper?

Capital has not become cheaper. On the contrary, interest rates are on the way up.

But I don't think it's growth expectations that are driving stock prices either. It feels more like investors shudder at the thought of owning any of the alternatives to US blue chips.

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