Stocks could be 'protected' from steep declines by Trump: BofA

Josh Schafer
Updated Fri, January 17, 2025 at 4:02 PM EST
2 min read

US stocks have looked sluggish at times over the past several weeks as rising rates and debate over whether the Federal Reserve will cut interest rates in 2025 sent the S&P 500 (^GSPC) to its lowest levels since the election.

But a better-than-expected inflation reading on Wednesday helped US markets perk up, and Bank of America investment strategist Michael Hartnett believes further downside in the S&P 500 will be "protected" by President-elect Donald Trump in the months ahead.

During his first term as president, Trump viewed the stock market as a barometer for his own administration's success. Expectations from many investors are that Trump will remain sensitive to a pullback in US stocks during his upcoming turn.

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