Hartnett: Markets are expecting Trump to turn to "lower tariffs, lower interest rates, lower taxes"

Global stock markets staged a stunning "deep V" rally in April, with the S & P 500 enjoying a nine-day rally since its plunge in early April, setting a record for the longest streak since November 2004. In response, Hartnett, chief investment officer at Bank of America, pointed out in a new research report that this trend indicates that investors expect Trump to shift to a "three-low" policy in the second 100 days, that is, lowering tariffs, lowering interest rates, and lowering taxes. At the same time, fears of a US recession triggered by "soft" data are also easing. Hartnett pointed out that the yield on the two-year US Treasury bond has fallen by 70 basis points since Trump, the oil price has fallen by 20%, and the dollar has depreciated by 9%, which has contributed to the easing of financial conditions. This, combined with the tech giants remaining strong in AI capital spending, expected to reach $320 billion in 2025, has eased recession fears.