RBC flags market pullback risk after S&P 500 rebound

RBC strategists stated that “the stock market is on a slightly better path than the one that we were on in early April.” 

However, they do not believe it has returned to levels seen in January or mid March. They also cautioned that rebounding sentiment remains the main risk to their outlook. 

RBC projected a broad range of scenarios by year-end, from a bull case of 6,400 to a bear case between 4,200 and 4,500, adding that the spread “highlights the high degree of uncertainty and fog in the outlook.”  

As per CNBC, Lori Calvasina, Head of US Equity Strategy at RBC Capital Markets, explained that a “meaningful move above 5 percent in the benchmark 10-year note yield would pressure equities.” 

The firm maintained its earnings-per-share forecast for the S&P 500 at US$258, below the consensus estimate of US$264, according to The Globe and Mail.