With the discussion about the possible extension of the #TrumpTaxCuts gaining momentum, financial markets are reacting by anticipating changes in the fiscal dynamics of the U.S.

The tax reductions implemented during his administration had a strong impact on corporate profitability, encouraged stock buybacks, and stimulated short-term economic growth.

An extension could mean new opportunities for sectors such as technology, energy, and banking, but it could also intensify the debate about fiscal deficit and inflation.

Investors and analysts are closely monitoring every signal coming from Washington, as the market adjusts expectations ahead of the elections.

More stimulus or fiscal risks on the horizon?