RBC Capital increases year-end S&P 500 forecast, anticipates 'volatile' movement following significant rally.

RBC Capital Markets' S&P 500 Forecast: RBC Capital Markets has raised its year-end forecast for the S&P 500 to 6,350, citing stronger-than-expected corporate profits, although this is still about 4% below current trading levels.

Cautious Outlook Amid Optimism: Despite the optimistic forecast, strategist Lori Calvasina expresses caution due to potential market volatility, poor seasonal patterns, and concerns over high valuations and retail investor fatigue.

Future Price Targets: Calvasina projects a price target of 7,100 for the S&P 500 in the second half of 2026, while highlighting the need to monitor upcoming economic challenges that could impact corporate profitability.

Market Sentiment Indicators: A recent drop in bullish sentiment among individual investors may signal potential short-term declines in the stock market, raising concerns about the overall health of the equity market amidst rising uncertainties.