RBC strategist says US stocks can withstand about two rate hikes by the Federal Reserve On June 23rd, Lori Calvasina from RBC Capital Markets stated that as long as the Federal Reserve's tightening cycle remains moderate, the US stock market should be able to withstand interest rate hikes. As long as there are two interest rate hikes of around 25 basis points each in the next 12 months, I believe the stock market will eventually recover, "said Calvasina, the head of US stock strategy at the bank, on Monday." The stock market seems to be able to withstand everything in moderation. "Last week's Federal Reserve policy meeting caught traders off guard, and the new chairman of the Federal Reserve, Kevin Walsh, made it clear that he would not tolerate high inflation. However, the US stock market still achieved gains during the shortened trading week due to the holiday, marking the second consecutive week of gains and the 11th increase in the past 12 weeks. The S&P 500 index has risen 18% since hitting its 2026 low on March 30th.