RBC strategists say that the U.S. stock market can withstand approximately two rate hikes by the Federal Reserve

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Golden Finance reported that on June 23, Lori Calvasina of RBC Capital Markets said that as long as the Federal Reserve’s tightening cycle stays moderate, the U.S. stock market should be able to withstand rate hikes. “As long as there are about two rate hikes within the next 12 months, each with an increase of 25 basis points, I believe the stock market will ultimately be fine,” the bank’s head of U.S. equity strategy, Calvasina, said on Monday. “The stock market seems able to handle everything as long as it’s done in moderation.” Last week’s Federal Reserve policy meeting took traders by surprise, with the Fed’s newly appointed chair, Kevin Woush, making it clear that it will not tolerate high inflation. However, U.S. stocks still rose during the shortened trading week due to the holiday, marking the second consecutive week of gains and the 11th increase over the past 12 weeks. The S&P 500 has risen 18% since hitting a low in 2026 on March 30.
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