Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    StockNews24StockNews24
    Subscribe
    • Shares
    • News
      • Featured Company
      • News Overview
        • Company news
        • Expert Columns
        • Germany
        • USA
        • Price movements
        • Default values
        • Small caps
        • Business
      • News Search
        • Stock News
        • CFD News
        • Foreign exchange news
        • ETF News
        • Money, Career & Lifestyle News
      • Index News
        • DAX News
        • MDAX News
        • TecDAX News
        • Dow Jones News
        • Eurostoxx News
        • NASDAQ News
        • ATX News
        • S&P 500 News
      • Other Topics
        • Private Finance News
        • Commodity News
        • Certificate News
        • Interest rate news
        • SMI News
        • Nikkei 225 News1
    • Carbon Markets
    • Raw materials
    • Funds
    • Bonds
    • Currency
    • Crypto
    • English
      • العربية
      • 简体中文
      • Nederlands
      • English
      • Français
      • Deutsch
      • Italiano
      • Português
      • Русский
      • Español
    StockNews24StockNews24
    Home » Stock Market Crash: Trump Tax, Tariff Policies Risk Inflating Another Bubble
    Bond

    Stock Market Crash: Trump Tax, Tariff Policies Risk Inflating Another Bubble

    userBy userMay 31, 2025No Comments2 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Bank of America said on Friday that a policy trifecta of lower taxes, lower tariffs, and lower interest rates could fuel a new speculative bubble in markets.

    The prediction comes as Donald Trump’s “big beautiful bill,” which would lower taxes among other fiscal measures, sits with the Senate after passing the House of Representatives last week. Meanwhile, Trump continues to pursue trade deals and has ramped up calls for the Fed to lower interest rates.

    BofA investment strategist Michael Hartnett said that policy could fuel a “deeper” rotation out of bonds and into a handful of areas of the stock market — most notably AI and the high-flying tech names that make up the Magnificent Seven — as well as crypto.

    Hartnett flagged the relationship between the stock and bond markets as a telltale sign of a bubble forming. An inversion of the classic “bonds master, stocks servant” dynamic has been a mark of past speculative frenzies, with this kind of market behavior seen in 12 of the last 14 bubbles, he noted.

    The 30-year Treasury touched the highest level since 2008 last week as markets tumbled over fears about the GOP budget bill adding to the US deficit.

    “Nothing screams bubble more than equities driving nominal/real yields higher,” Hartnett wrote.

    The analysts added that based on past market manias, the Magnificent Seven could see a fresh gain of 30% before the group peaks.

    The speculation mentioned by Hartnett may already be underway, with so-called low-quality stocks outperforming the broader market over the past few weeks. This dynamic was first pointed out by Bloomberg in a story published Thursday.

    Illustrating this dynamic, a basket of low-quality stocks compiled by UBS — which counts meme stocks like GameStop and AMC among its components — has handily beaten the S&P 500 since its recent bottom on April 8.

    Crypto has also seen gains in recent weeks, highlighting the speculative, risk-on mood that’s returned as investors work past the tariff chaos that sparked April’s big sell-off. Bitcoin is trading at fresh records, hitting an all-time high above $112,000 last week.





    Source link

    Share this:

    • Click to share on Facebook (Opens in new window) Facebook
    • Click to share on X (Opens in new window) X

    Like this:

    Like Loading...

    Related

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleDown 30% in 3 months, this FTSE 100 share might be a bargain!
    Next Article What will be maximum loss in a mutual fund investment?
    user
    • Website

    Related Posts

    These stocks could benefit if interest rates break out higher

    June 1, 2025

    Famed Bear Albert Edwards Says Stocks Are Vulnerable, Japan Risks Rising

    June 1, 2025

    Gold Likely to Shine More on Demand Supply Imbalance: 5 Top Picks

    June 1, 2025
    Add A Comment

    Leave a ReplyCancel reply

    © 2025 StockNews24. Designed by Sujon.

    Type above and press Enter to search. Press Esc to cancel.

    %d