According to Odaily Planet Daily, Citigroup strategists said that the political platforms of both Trump and Harris seem to be unfavorable to the US stock market, and the Democratic candidate's plan to raise corporate taxes is the most affected.
Scott Chronert, an analyst at the bank, said Harris' plan would reduce the fair value of U.S. stocks by 4% to 6%. Meanwhile, the impact of policies planned by Republican candidates ranged from 0% to minus 4%.
Strategists say Trump’s plan would trigger the biggest hit to the U.S. fiscal deficit yet, which will be a major issue going forward. Trump has pledged to cut the federal corporate tax rate to 15% from 21%, while Harris has proposed raising it to 28%.
Goldman Sachs Group Inc. strategists estimate the U.S. election could have a significant impact on S&P 500 earnings, with Trump's tax cut plan boosting earnings while Harris' plan would reduce profits.
Overall, forces such as investor sentiment toward a soft landing, the Federal Reserve’s actions and artificial intelligence tailwinds are having a bigger impact on U.S. stocks than the Nov. 5 vote, Citi said.
