RBC Capital Markets cuts year-end 2018 target for S&P 500

RBC Capital Markets has trimmed its FY2018 S&P 500 target to 2,890 from 3,000 and its 2018 earnings per share estimate to $151 from $155.

"The bull is limping, but still moving forward," RBC said, adding that it is still constructive on stocks on a 6-12 month view, but its enthusiasm is a notch lower than where it was to start the year.

"Our targets are driven by the math, but they do sync up with our view on where markets are headed. We expect 2018 to be a good year (our new target implies an 8% full year gain), but believe returns will be less robust than those seen 2017."

The bank said its new EPS forecast, new valuation assumptions and its belief that the backdrop for equities has eroded - but hasn’t flipped negative - account for the reduction in its price target.