Democratic wins expected to slam the S&P 500

Oppenheimer strategist John Stoltzfus wrote in a note Monday, “Should the Democrats win both seats, we expect the S&P 500 to become vulnerable to a downdraft in the neighborhood of 6% to 10%.”

The Dow Jones Industrial Average and the S&P 500 both opened high Monday but plummeted amidst political fears of an unbalanced government and potential corporate tax hikes for 2021. The Dow closed Monday down 1.25%, more than 382 points. The S&P 500 lost more than 55 points, a 1.48% drop.

Well, higher taxes should certainly make a lot of people feel better.