Here’s how much stocks could fall if the Democrats sweep Congress as expected, according to BofA Michael Hartnett sees 10% downside or more if prediction markets are right about midterms The rising probability of the Democratic Party taking control of both houses of Congress in the midterm elections poses a “meaningful” threat to risk appetite, said Michael Hartnett, Bank of America’s chief equity strategist. He posited that if the Democrats were to win both the House and the Senate, U.S. stocks could plummet more than 10%. And more than just the stock market SPX would feel the effects, he said.
Jules Rimmer is a markets reporter in London. Rimmer spent more than 30 years as a trader and stockbroker, starting at Salomon Brothers in the “Liar's Poker” era, taking in ING Barings, Jefferies and ending it in emerging markets at Investec. He hung up his headset and pivoted to journalism in 2021.
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