BofA strategists led by Michael Hartnett say a strong Republican showing on Nov.
3 — including the party holding the Senate and Greg Abbott winning reelection as
Texas governor — would extend the US equity rally, with AI-related names
particularly favored and markets potentially moving toward ‘bubble-like’ 2027
dynamics. By contrast, BofA warns a Democratic pickup of the Senate and an
Abbott defeat would trigger a greater-than-10% equity selloff and push the
dollar and Treasury yields lower into year-end. Separately, Goldman strategist
Snider recommends buying index volatility in the months ahead of the election.
