#MarketPullback The current market situation indicates a potential pullback risk. Here's what's happening

- *S&P 500 Forecast*: RBC Capital has raised its year-end 2025 forecast for the S&P 500 to 5,730, but warns of a wide downside risk and a choppy path through 2025. The firm's target is 3% below the index's recent close.

- *Market Trends*: The S&P 500 has rebounded from April lows, supported by lower inflation, strong corporate earnings, and a shift in tariff policy. However, strategists caution that gains may be more muted for the rest of the summer.

- *Tariff Impact*: The market has priced in potential good news on tariffs, which may limit upside momentum. Risks of slowing growth, sticky inflation, and rising equity valuations remain.

- *Current Prices*: As of today, the S&P 500 is trading at 6,004.40, with a 1.21% increase, while the Nasdaq is at 21,781, up 1.38%.

*Market Pullback Risks:*

- *Interest Rate Impact*: A meaningful move above 5% in the benchmark 10-year note yield could pressure equities.

- *Tariff Uncertainty*: The market's assumption that Trump will walk back his tariff announcements may be masking deeper vulnerabilities.

- *Economic Slowdown*: Risks of slowing growth and sticky inflation could impact market performance.

*What to Expect:*

- *Volatility*: Heightened volatility is expected in the coming quarters.

- *Range-Bound Market*: The S&P 500 may remain range-bound at 5,500-6,000 points for the next month or so.

- *Opportunities*: Market pullbacks can be opportunities for long-term investors, as prices fall and stocks go on sale.