Another key argument for stocks to keep soaring under Trump has been turned on its head

American Big Tech companies want Donald Trump to fight back against European regulators.

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• The Trump administration will keep Biden-era antitrust guidelines in place.
• The development could upend Wall Street's prediction of an M&A boom un... ## Trump Administration to Maintain Biden-Era Antitrust Guidelines, Dampening M&A Expectations ### Biden-Era Antitrust Guidelines Extended In a significant development, the Trump administration has announced its intention to retain the antitrust merger review guidelines established under the Biden administration. This move has surprised investors who anticipated looser enforcement under a Republican president. The existing guidelines aim to curb monopoly power and have been cited in the blocking of several mergers in recent years. Notably, the Federal Trade Commission (FTC) Chairman, Andrew Ferguson, emphasized the need for consistency in antitrust policies, arguing that frequent changes create an unstable business environment. ### Impact on Mergers and Acquisitions Wall Street experts had predicted a surge in mergers and acquisitions (M&A) activity under Trump, driven by the belief that the new administration would adopt a more lenient approach to antitrust enforcement. However, the decision to maintain the current guidelines has dampened these expectations. Top investment banks, such as Goldman Sachs, had outlined strategies to capitalize on an anticipated "supercycle" of M&A deals. However, the uncertainty surrounding the antitrust environment has tempered confidence in these predictions. ### Broader Market Implications The antitrust stance has also affected the overall stock market outlook. Investors had initially expected a "Trump bump" rally driven by deregulation and tax cuts. However, trade policy uncertainties and inflation fears have overshadowed these hopes. The delayed and threatened trade war with close allies has raised concerns about reduced earnings for S&P 500 companies and dampened expectations of multiple interest rate cuts this year. Consequently, US stock indexes have underperformed compared to international peers. ### Conclusion The Trump administration's decision to maintain Biden-era antitrust guidelines has significantly altered the expectations surrounding M&A activity and the broader stock market outlook. Investors must now reassess their strategies and consider the potential impact of ongoing antitrust scrutiny on potential mergers.