Democrat blue wave to have modest impact on S&P 500 earnings – Goldman Sachs

Democrat's control of the presidency and both chambers of Congress – also referred to as a blue wave – would only have a moderate net impact on the medium-term path of S&P 500 earnings, according to analysts at Goldman Sachs. 

Democrat's candidate Joe Biden is likely to reduce tariffs and deliver bigger fiscal spending following a victory in the Nov. 3 presidential elections. However, the positive impact of these moves will be negated by a higher corporate tax to some extent. 

As such, the annualized S&P 500 earnings per share growth would be 13% through 2024, as per Goldman Sachs. "That's similar to our baseline forecast," the investment banking giant said.