Wall Street is bullish on Trump's tax cuts: they will boost the U.S. stock market in the next two years, with nearly 30% of s&p 500 companies benefiting.
① Wall Street expects Trump's tax cuts to drive up U.S. stocks and corporate profits, with about 145 companies in the s&p 500 index likely to benefit significantly. ② Goldman Sachs predicts that Trump's tax policy may increase corporate profits of s&p 500 index constituent companies by 20% over the next two years, potentially pushing the s&p 500 index up to 7,500 points by 2026.
It can still rise by 10%! Goldman Sachs has raised the target price for the s&p 500 index for next year.
According to goldman sachs' baseline forecast, the economy and corporate profits in the usa will continue to grow, thereby boosting the stock market.
Be cautious! A new wave of inflation may be on the way.
Greenlight Capital's President David Einhorn expressed that the election results are good for avoiding the political stability issues he was worried about not long ago. However, in terms of the economy, he expects that Trump's second term policies will bring about higher inflation, thus leading to a bigger problem.
The Republican Party won a majority of seats in the House, but the slim advantage brings challenges.
House Republicans are expected to win a majority of seats in the next Congress, giving them unified control that allows Trump to have more say in budget and tax battles. However, given that the Republican majority is expected to be narrow and internal consensus may be difficult to achieve, this could hinder their efforts to advance Trump's agenda.
Express News | US media predicts that the Republican Party will win control of the House of Representatives.
Express News | Institutions: The Republican Party takes control of the House of Representatives in the USA, a 'red wave' is coming.