{"id":27298,"date":"2026-06-15T17:48:11","date_gmt":"2026-06-15T21:48:11","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-us\/?post_type=rbcwm_newsroom&p=27298"},"modified":"2026-06-17T17:55:34","modified_gmt":"2026-06-17T21:55:34","slug":"u-s-stock-market-climbs-the-wall-of-worry-as-corporate-earnings-brighten-and-economy-holds-firm-rbc-wealth-management-suggests","status":"publish","type":"rbcwm_newsroom","link":"https:\/\/www.rbcwealthmanagement.com\/en-us\/newsroom\/2026-06-15\/u-s-stock-market-climbs-the-wall-of-worry-as-corporate-earnings-brighten-and-economy-holds-firm-rbc-wealth-management-suggests","title":{"rendered":"U.S. stock market climbs the wall of worry as corporate earnings brighten and economy holds firm, RBC Wealth Management suggests"},"content":{"rendered":"\n

MINNEAPOLIS (June 15, 2026)<\/strong> \u2014 Despite a demanding backdrop of geopolitical tension, elevated Treasury yields, and looming midterm election uncertainty, the U.S. stock market has climbed the wall of worry and the economy has held firm, RBC Wealth Management suggests in its Global Insight Mid-Year 2026 Outlook<\/a> released Monday.<\/p>\n\n\n\n

\u201cCorporate earnings have been the great stabilizer this year, and the profit outlook for 2026 and 2027 has brightened notably since January,\u201d said Kelly Bogdanova, Vice President and Portfolio Analyst at RBC Wealth Management\u2013U.S. \u201cThe bull market is persisting into its fourth year, the economy remains resilient and investors who stay disciplined are being rewarded, even with real hurdles still ahead.\u201d<\/p>\n\n\n\n

U.S. equities: Earnings brighten as market eyes midterm elections<\/strong><\/h3>\n\n\n\n

The U.S. stock market has shown notable resilience in 2026, with the S&P 500 rallying year-to-date through mid-June and the Information Technology sector outperforming sharply. Corporate earnings have been the great stabilizer, and the profit outlook for 2026 and 2027 has brightened considerably compared to the start of the year.<\/p>\n\n\n\n

The Information Technology sector delivered a standout first quarter, posting 49% year-over-year profit growth, with AI capital spending providing continued upward momentum to consensus earnings forecasts across multiple sectors. The buoyant S&P 500 profit outlook checks a key box among the catalysts RBC Wealth Management identified as necessary for the bull market to persist into a fourth year.<\/p>\n\n\n\n

With the midterm elections approaching on November 3, RBC Wealth Management is mindful that the S&P 500 has experienced an average 21% correction surrounding midterm election years since 1934. Additional volatility cannot be excluded, particularly if Treasury yields continue to rise or midterm election angst materializes.<\/p>\n\n\n\n

\u201cEarnings have cleared a high bar this year, and that has given the bull market real staying power,\u201d said Bogdanova. \u201cBut we are watching the midterm election dynamic closely, and<\/p>\n\n\n\n

history tells us it is an obstacle worth respecting.\u201d RBC Wealth Management recommends maintaining a Market Weight position in U.S. equities, while scrutinizing Technology holdings where sharp rallies could give way to meaningful volatility.<\/p>\n\n\n\n

U.S. fixed income: Yields could reach new cycle highs as investors focus on income<\/strong><\/h3>\n\n\n\n

Global bond markets are navigating a challenging stretch at the midpoint of 2026, with rising yields pushing total returns modestly into the red year-to-date. Thirty-year government bond yields across major economies are at or near twenty-year highs, with the simple average breaching 4.0% for the first time since early 2009.<\/p>\n\n\n\n

RBC Wealth Management\u2019s base case is that the Fed holds rates steady through 2026, but with a clear bias toward potential hikes. We see scope for the benchmark 10-year Treasury yield to test key highs from this cycle: 4.8% from 2025 and potentially the 5.0% level from 2023.<\/p>\n\n\n\n

With bond price appreciation likely to remain elusive, RBC advises investors to focus on maximizing income. Credit spreads are tight, with global corporate bonds offering just 0.76% of incremental yield over government peers, but absent a recession, corporate bonds should perform reasonably well. Additionally, bank-issued hybrid preferred bonds offer an attractive alternative to corporate bonds, in our view.<\/p>\n\n\n\n