JPMorgan Says Wall Street Is Too Negative About a Biden Win
- Bank cites benefits of potentially softer tariff rhetoric
- Strategists say Biden win may be slightly positive for markets
Joe Biden speaks during a campaign event in Wilmington, Delaware.
Photographer: Alex Wong/Getty Images North
Wall Street is too negative on prospects for the markets if Democratic candidate Joe Biden wins the U.S. presidential election in November, according to JPMorgan Chase & Co.
Numerous factors could make Biden more market-friendly than analysts currently predict, including a historical tendency to converge toward the political center, potential benefits from infrastructure spending, a softening of tariff rhetoric and higher wages, strategists including Dubravko Lakos-Bujas and Marko Kolanovic wrote in a note Monday. They also said the tax hit to S&P 500 earnings is likely to be lower than many are expecting, and that an increase in the federal minimum wage would probably be net positive for companies.