Possible scenario
Policy Relief Repricing
15%
+0.8%
Investors decide the initial selloff overstated the negative tax and regulatory implications of Democratic congressional control. The market instead focuses on the possibility of tariff constraints, smaller deficits and lower inflation pressure, supporting parts of the equity market even as yields and the dollar stay soft.
What it moves
- Technology+1.3%
- Consumer Cyclicals+1.2%
- 10-year Treasury yield
- Riskier companies' borrowing costs
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