S&P 500 Outlook and Market Volatility from Middle East Tensions

Despite Middle East tensions, rising oil prices, and elevated Treasury yields creating market headwinds, RBC's Lori Calvasina believes the S&P 500 has upside potential ahead. While Fed policy uncertainty and potential rate hikes pose risks, Calvasina argues these concerns may not be sufficient to halt the equity rally that followed the index's longest weekly advance since May. The positive momentum in chipmakers and the AI sector, coupled with strong corporate earnings like Anthropic's revenue surge, continue to support stock valuations.