10AM Hour: 5-10% Pullback Coming? C.H. Robinson CEO of Deal for RXO, Former DOJ Antirust Chief on AI Regulation 10/5/26

RBC warns of a 5-10% pullback as rate-driven valuation models weaken even while sentiment indicators stay bullish.

• RBC's cautious target: Lori Calvasina keeps a 12-month S&P target of 8,150, noting her earnings-yield-gap model's return signal fell from +14% to +9% as bond yields rose, even as sentiment models now point to +15%.
• Financials still pricey: Calvasina flags capital markets stocks (investment banks, alt managers) as the expensive problem child within financials, alongside industrials and utilities, while software/semis valuations look more reasonable.

Themes, sentiment and reasons are AI-written paraphrases, checked so they never quote an episode. They may contain errors. Not investment advice. Episodes remain the property of their creators.