STOCKS | RBC Forecasts S&P 500 to Reach 7,900 Points in 12 Months

RBC anticipates that the S&P 500 index will rise to 7,900 points within the next 12 months, indicating a potential upside of approximately 7.7%. According to Jin10, the bank also cautions that any market pullback could range between 5% and 10%. Analyst Lori Calvasina noted that a significant decline of 14% to 20% is unlikely unless recession risks resurface, describing the expected adjustments as 'common occurrences.' This outlook is based on a growth model driven by AI-powered earnings growth, with associated risks linked to inflation, interest rates, and geopolitical shocks. RBC remains optimistic about the U.S. stock market and growth stocks.