RBC Capital Markets has rolled out its first preliminary forecasts for the S&P 500 in 2026, projecting a second-half price target of 7,100 alongside earnings of $297 per share for the year. The bank stressed the numbers are highly tentative and should be seen as an early guide to how its models are shaping up, with revisions likely as the outlook evolves.

In the nearer term, RBC has turned slightly more optimistic on 2025, nudging its year-end price target for the index to 6,350 from 6,250, underpinned by a higher EPS forecast of $269. The upward adjustment reflects firmer earnings expectations but not an all-clear signal for markets.

Strategists warned that investors should still brace for volatile and uneven conditions in the coming months, even as the broader trajectory points higher into 2025 and beyond. RBC’s cautious tone echoes wider market sentiment that while corporate earnings growth remains a support, policy uncertainty, sticky inflation, and shifting interest-rate expectations could keep risk appetite in check.