LONDON (Reuters) – The Fed is likely to provide support to financial markets if the US presidential election results are challenged, which will positively impact tech stocks, BofA analysts wrote on Friday.
“The likely aggressive injections of Fed liquidity in the wake of the contested elections will be positive for the tech sector,” the report said.
US President Donald Trump earlier in September refused to guarantee a peaceful transfer of power if Democrat Joe Biden lost the November 3 election.
BofA also said, citing data from EPFR for the week ending September 30, that strong inflows to tech stocks have resumed after the Nasdaq correction in early September.
Among other important trends in equity markets, the BofA report noted the largest inflows to Japanese assets in 9 weeks, the largest in 4 weeks to emerging markets and the strongest outflow from Europe in 13 weeks.
(Julien Pontus. Translated by Anna Rzhevkina. Editor Marina Bobrova)