RBC Raises S&P 500 Year-End Target Amid Tariff Concerns

BENGALURU, India — RBC Capital Markets raised its year-end price target for the S&P 500 index to 6,250 from 5,730 on Sunday. This marks the second increase this year as investor sentiment improves and there is a growing focus on economic prospects for 2026.

The S&P 500 index eased from a record high on Friday due to caution around recent tariff threats. President Donald Trump recently imposed a 50% tariff on Brazil, leading to increased tension with other international trading partners, particularly the European Union. Despite the recent decline, the S&P 500 is up around 6.4% so far in 2025.

The RBC strategist noted, “Both RBC economics and consensus anticipate another year like this in 2026.” Their analysis considers how stocks behave in periods of moderate GDP growth, specifically when growth is between 1.1% and 2%.

This month, RBC had already raised its target for the S&P 500 to 5,730 from 5,500, while other major financial institutions like BofA Global Research and Goldman Sachs also increased their projections for the index. RBC confirmed its 2025 S&P 500 earnings per share forecast at $258, which is slightly below market consensus.

The firm mentioned it is still early to disregard the potential impacts of tariffs based on early earnings reports. Investors will be watching closely as market dynamics evolve in the coming months.