-- Both Donald Trump’s and Kamala Harris’s political platforms appear negative for US equities, with the Democratic candidate’s plans to raise corporate tax seen having the biggest impact, according to Citigroup Inc. strategists.A team led by Scott Chronert found that the Harris platform would hit the fair value of US stocks by 4% to 6%. “This is mostly a function of the direct implication of higher corporate tax rates in a Harris outcome,” they wrote in a note.
Trump promised to cut the federal corporate tax rate to 15% from 21% while Harris proposed to lift the rate to 28%. Goldman Sachs Group Inc. strategists estimate that the US election could have a big impact on S&P 500 earnings, with Trump’s planned tax cuts lifting earnings while Harris’s plans reducing profits.
Overall, forces such as investor sentiment toward a soft landing, the Federal Reserve’s actions and AI tailwinds, exert a more significant impact on US equities than the Nov. 5 ballot, Citi said. “Election outcomes and impacts are deemed incremental to that,” according to Chronert.Matt Bomer and Jonathan Bailey Bring Cummerbunds to 2024 Emmy Awards Red Carpet in Brioni and Giorgio Armani