The S & P 500 could rally nearly 23% into 2025 if the Republicans sweep the election, according to Jay Hatfield, founder & CIO of InfraCap. Specifically, Hatfield said he sees the broad market index climbing to 7,000 next year. The benchmark closed at 5,782.76. A Republican-controlled presidency and Congress could mean lower taxes and regulation more favorable to businesses. The odds of that scenario grew overnight, as former President Donald Trump took the lead in the U.S. presidential race over Vice President Kamala Harris. Trump won battleground state North Carolina, while Harris took Virginia, NBC News projects . The GOP also appeared on track to be making inroads in Congress. To be sure, NBC News still sees several states as too close to call or too early to call. Hatfield also noted that concerns around Trump’s aggressive tariff stance may be overblown. “We think that people are way too nervous about the tariffs, because they always ignore that they produce a lot of revenue. If you take that revenue and cut corporate taxes or even individual taxes, that’s a big offset to that, and it’s actually pro-investment,” he said. Some investors have expressed their concerns that universal tariffs under a Trump administration might impair companies that heavily source their goods from overseas markets. Despite the current electoral backdrop, Hatfield cautioned he’s not as confident as the market is about Trump regaining the presidency. Absentee ballots and late report could wipe out Trump’s current advantages, he said. “It seems like the odds might be a little bit ahead of the data so far,” he told CNBC.
