RBC lifts S&P 500 year-end target to 5,730 points

RBC on Monday raised its year-end target for the S&P 500 index to 5,730 from 5,550, reflecting a modestly improved U.S. economic outlook and stronger-than-expected corporate earnings.

The S&P 500 index ended May with its biggest monthly increase since November 2023 as U.S. President Donald Trump’s softening tariff stance, upbeat earnings and tame inflation data helped markets recover from their April lows.

Last month, Goldman Sachs and UBS Global Wealth Management raised their S&P 500 targets.

RBC’s target for the benchmark index is 3 per cent lower than Friday’s close of 5,911.69 points. The brokerage has revised its target for the index three times this year.

“Our new price target reflects our belief that the stock market is on a slightly better path than the one that we were on in early April, but not back to where it was in January or mid March,” RBC strategists said in a note.

“Rebounding sentiment is the main risk to our call.”

RBC maintained its earnings-per-share forecast for the index at US$258, lower than the consensus forecast of US$264 for this year, according to the brokerage.

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