Bank of America: Don't fight the tape! S&P 500 could rise 5% in the two weeks after the U.S. election
1min read Bank of America data shows the S&P 500 index surged 2.5 per cent on the day after the US election, a move that historically could lead to a near 5 per cent rise in the next two weeks. The index has risen 1.2 per cent since the election through Monday.The S&P 500 continued to climb after Mr Trump’s victory, closing above 6,000 for the first time on Monday. “Don’t fight the tape,” said Ohsung Kwon, a bank equity and quantitative strategist, in a note. “In the previous election cycle, when the market rose on the first trading day after the election, the market returned positive 100 per cent in the next two weeks.”Meanwhile, yields on the 10-year and 30-year US Treasury bonds have fallen sharply to levels seen before the election, easing a key concern for the stock market “at least for now”. But the impact could be more nuanced in the long run, Mr Kwon said. “Event uncertainty from the election has been removed, but policy uncertainty should still be high.”