Home Democrat blue wave to have modest impact on S&P 500 earnings – Goldman Sachs
FXStreet News

Democrat blue wave to have modest impact on S&P 500 earnings – Goldman Sachs

Democrat’s control of the presidency and both chambers of Congress – also referred to as a blue wave – would only have a moderate net impact on the medium-term path of S&P 500 earnings, according to analysts at Goldman Sachs. 

Democrat’s candidate Joe Biden is likely to reduce tariffs and deliver bigger fiscal spending following a victory in the Nov. 3 presidential elections. However, the positive impact of these moves will be negated by a higher corporate tax to some extent. 

As such, the annualized S&P 500 earnings per share growth would be 13% through 2024, as per Goldman Sachs. “That’s similar to our baseline forecast,” the investment banking giant said. 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.