Lates News

The strategist of RBC Capital Markets raised the year-end target of the S&P 500 index from 5550 points to 5730 points, believing that the market trend is slightly better than expected at the beginning of April. However, they warned that the future path will still be "volatile". The team led by Lori Calvasina gave this somewhat optimistic outlook, with the key risk being the rebound in market sentiment - although the target implies a 3.1% decline from last Friday's closing index. Royal Bank of Canada pointed out that the model shows a range of potential outcomes: in an optimistic scenario, the benchmark index could close near 6400 points by the end of the year; while a more conservative model shows around 5500 points. The bank believes that economic tailwinds are hard to find and the Fed may not cut interest rates until September, which is one of the reasons for maintaining a neutral view on small-cap stocks compared to large-cap stocks. The strategists wrote, "Rate cuts often lead to small-cap outperformance, but unless accompanied by an economic downturn and recovery, this outperformance trend is usually difficult to sustain." (Global Market Report).