Bank of America's Hartnett: The market is expecting Trump to shift towards "lower tariffs, lower interest rates, lower taxes"

The stock market saw a stunning "Deep V" rebound in April, with the S&P 500 experiencing a 9-day rally after a sharp drop at the beginning of the month, setting a record for the longest consecutive increase since November 2004. Bank of America's chief investment officer Hartnett pointed out in the latest research report that this trend indicates investors' expectations for Trump's shift towards a "three lows" policy in his second hundred days, namely lowering tariffs, lowering interest rates, and lowering taxes. At the same time, concerns about a recession in the US economy triggered by "soft" data have eased. Hartnett stated that the 2-year US Treasury bond yield has dropped by 70 basis points since Trump took office, oil prices have fallen by 20%, and the US dollar has depreciated by 9%, all contributing to looser financial conditions. In addition, capital expenditures by tech giants in the field of AI remain strong, with an expected total of $320 billion by 2025, jointly alleviating concerns about a recession.