RBC strategists say that the US stock market can withstand about two interest rate hikes by the Federal Reserve.
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Lori Calvasina of RBC Capital Markets stated that as long as the Federal Reserve's tightening cycle remains moderate, the US stock market should be able to withstand interest rate hikes. "As long as there are around two rate hikes of 25 basis points each over the next 12 months, I think the stock market will ultimately be fine," Calvasina, head of US equity strategy at the bank, said on Monday. "The stock market seems able to withstand anything done moderately."
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