Stronger prospects for another economic relief package from Washington, maybe even in time for the election next month, are injecting a dose of confidence in stocks.
sees the election as a positive catalyst, sticking to its year-end 3,600 target for the S&P 500. If that prediction holds, it implies another 6% gain from the current level. A Trump win could push the index to 4,000, J.P Morgan strategists said.
“Fundamentals are positive on both policy and economic developments,” said Marko Kolanovic, J.P. Morgan’s global head of macro quantitative and derivatives strategy, in a recent note.
Analysts and strategists agree that no matter who wins in November, the economic reopening will continue and will accelerate despite new spikes in Covid-19 cases in much of the country.
Over the weekend, House Speaker Nancy Pelosi said the