BofA’s Michael Hartnett warns a Democratic sweep of Congress could trigger a 10%+ stock market drop

Bank of America strategist Michael Hartnett says a Democratic takeover of both the House and Senate could send U.S. stocks down more than 10%. He sees higher taxes, tighter regulation and weaker corporate earnings putting pressure on the market, with AI stocks also exposed if Democrats increase scrutiny of data centers and tech spending. Hartnett has been telling clients to stay defensive through mid-November, warning of further declines in stocks, Treasury yields and the dollar. The call is a market scenario, not a prediction that a Democratic win automatically causes a crash.

https://www.marketwatch.com/story/heres-how-much-stocks-could-fall-if-democrats-sweep-congress-as-expected-according-to-bofa-d1ed23f8