RBC Lifts S&P 500 Target 10% as Bonuses Hold Steady Despite Iran Risks

Wall Street bonuses for 2026 are projected flat to slightly higher despite Iran war risks, with RBC Capital raising its S&P 500 price target for 10% upside driven by big tech. The outlook follows an initial rally after Trump's May 6 pause in Operation Freedom to negotiate with Iran, lifting S&P 500 futures 0.4% to 7,315 and closing at a record 7,259 (+0.8%). Gains pared amid oil's 7.5% plunge to $94.54 (high $102.70, low $88.66) and falling yields (10-year 4.353% -6bps), while equity risk premium nears negative levels signaling caution.