RBC: STOCK VALUATIONS RISING, BUT NO MARKET TOP YET RBC says U.S. equity valuations are climbing but still below levels that typically signal a market peak, keeping a constructive outlook. Key points: 🔸S&P 500 forward P/E just above 25x, below last year’s ~28x peak 🔸Russell 2000 at ~16.6x, still under prior highs 🔸RBC keeps 7,750 S&P 500 12-month target Risks ahead: 🔸Earnings cuts outside AI names Midterm election uncertainty 🔸Profit-taking in semiconductors and AI stocks Despite elevated valuations, RBC says corporate resilience—via hedging, pricing power, and inventory control—has supported markets, even amid war-related cost pressures. Pullbacks are expected but likely limited to 5–10%, with deeper declines typically requiring recession fears.(*Walter Bloomberg)