TechFlow news, on November 1, according to Jinshi Data, Bank of America analyst Michael Hartnett said investors should consider selling U.S. stocks if Trump's victory triggers a stock market rally. This echoes Citigroup's view earlier this week. If Trump wins and Republicans gain majorities in both the Senate and the House, it could lead to tax cuts and immigration controls. This would drive up inflation and interest rates, putting equities at risk.
The views from Wall Street's two largest banks contradict the prevailing belief that a Trump victory would boost the U.S. stock market, as Trump's proposed corporate tax reductions would benefit company earnings. Hartnett calls this mainstream view a "contrarian challenge." He also recommends buying on dips if Harris wins, as her victory would maintain the status quo that supports continued gains in tech stocks—the main driver behind this year's surge in the U.S. equity market.
