InfraCap founder and CIO Jay Hatfield stated that if the Republican Party wins overwhelmingly in the election, the S&P 500 index could rise nearly 23% by 2025.

Specifically, Hatfield stated that he expects the S&P 500 index to climb to 7,000 points next year, as a Republican-controlled presidency and Congress could mean lower taxes and more business-friendly regulations.

As former President Trump leads Vice President Harris in the U.S. presidential race, the likelihood of a 'red wave' is rapidly increasing.

According to NBC News, Trump won the battleground state of North Carolina, while Harris won Virginia. The Republican Party also seems poised to sweep Congress. It is certain that NBC News still believes several states are too close to call, making the outcome uncertain.

Some investors are concerned that the Trump administration's broad tariffs could harm companies that source goods heavily from overseas markets.

Hatfield noted that concerns over Trump's aggressive tariff stance may be exaggerated. 'We believe people are too anxious about tariffs because they always overlook the significant revenue tariffs bring. If you take away that revenue and cut corporate taxes or even personal taxes, it would greatly offset this, and in fact, be beneficial for investment.'

As the initial vote counts for the U.S. presidential election are released, market expectations for Republican candidate Trump winning the presidency are rising, leading traders to reduce bets on the Federal Reserve cutting rates next year, resulting in a sharp strengthening of the dollar and a significant rise in U.S. Treasury yields.

Traders in futures contracts linked to the Federal Reserve's policy rate continue to bet that the Fed will cut rates by 25 basis points this week and again in December, but now expect that the Fed may stop cutting rates after two more reductions in the first half of 2025, bringing rates down to a range of 3.75%-4%.

However, the wait for the final election results may be a long process. Amanda Sundstroem, a strategist at Nordea Bank in Sweden, stated in a report: 'In the coming days, the market will continue to fluctuate due to the election results and the market trying to navigate the new president's impact on growth, inflation, and monetary policy.'

Article reposted from: Jin Shi Data