Bank of America: Trump's trade deal will protect US stocks from a sharp drop, but it will not lead to a significant increase.

An American bank strategist stated that with investors focusing on Trump's protectionist economic agenda and proposal to lower corporate taxes, Trump's return to the White House may protect the US stock market from large-scale selling. Bank of America strategist Michael Hartnett said in a report that US stocks are "protected by Trump" and will not decline. However, the strategist also predicted that due to risks such as the high concentration of large tech stocks, valuations, and investor positions, US stocks will not rise significantly. Trump will be sworn in as the 47th President of the United States on Monday and will reiterate his focus on increasing tariffs, cutting taxes, and cracking down on illegal immigration as core priorities. After Trump won the election in November last year, the S&P 500 initially rebounded, with a focus on small-cap stocks outperforming large caps domestically as investors bet that Trump's policies would boost corporate profits while maintaining economic growth resilience.