Royal Bank of Canada raises its S&P 500 target to 8150 points, while warning that the upward trend will not be smooth sailing BlockBeats News: On June 30th, Lori Calvasina, Chief Strategist for US Stocks at Royal Bank of Canada Capital Markets, raised her 12-month target for the S&P 500 index by 250 points to 8150 points on Monday. Compared to last Friday's closing point, the updated target level implies a 10.8% upward potential. The bank believes that there is still room for the US stock market to rise, while warning that the upward process will not be smooth sailing. In a research report sent to clients on Monday, Calvasina wrote, "We still believe that this forecast is optimistic but not divorced from reality. The core judgment is that the stock market will generally rise in the next year, but the trend will not be a one-sided linear increase." This upward target is partly due to the positive signals released by earnings per share and valuation expectations. The strategist predicts that the adjusted earnings per share for the past four quarters in the first quarter of next year will reach $337. At the same time, its model still maintains conservative assumptions and reminds that market volatility is inevitable during the upward trend, and the biggest risk comes from the Federal Reserve's resumption of interest rate hikes. According to the data from the "Federal Reserve Watch" tool of Zhishang Institute, the probability of the Federal Reserve raising interest rates at its September meeting is 64% based on market pricing.