RBC Sees 'Political Obstacles', Lowers S&P 500 Forecast

Investing.com - RBC Capital Markets is the latest Wall Street firm to lower its expectations for the stock market this year.In a note to investors, the firm said it is reducing its year-end forecast for the S&P 500 from 3,000 to 2,890 because of a growing number of "political obstacles."RBC said the prospects of a trade war with China, a sweep by the Democratic party in the midterm elections and a regulatory crackdown on the tech sector are all negatives for the market.RBC also downgraded the tech sector to underweight, saying it will no longer lead the market in either fundamentals or earnings.The firm's 2,890 price target is about 100 points higher than the market's January peak and represents an 8% gain for the year.