The noise in Washington has led to uncertainty in the markets that Wall Street is eager to shrug off.
According to our article analysis, a positive sentiment is present throughout Politico’s piece on Wall Street’s betting on the election. This could have to do with a positive outlook on a Biden administration that would put an end to restrictive trade policy and provide increased stimulus to the American people. While the prospect of a blue wave is being treated as almost fait accompli in the markets, there isn’t too much hand wringing around the idea of a Trump reelection. Which would mean the continued promise of low tax rates on corporate profits, and low regulation.
Despite this positive outlook, there’s a dark cloud of risk language all throughout this article. No matter who wins this election – there’s concern about the impacts on the economy. The timing of a renewed stimulus package or higher taxes and regulation from a Biden win has some on Wall Street worried, especially if the GOP holds the Senate. Whereas, a Trump reelection could mean a more emboldened Trump and further trade wars with partners like China, another outcome that doesn’t please market analysts.
Read our full article analysis here.