The Fed is likely to provide support to financial markets if Trump or Biden will attempt to challenge the results of elections, with the tech sector as key beneficiary, BofA analysts wrote on Friday.

"The likely aggressive injections of Fed liquidity in the wake of the contested elections will be positive for the tech sector," the report said.

US President Donald Trump earlier in September refused to guarantee a peaceful transfer of power in case of his defeat.

BofA also said, citing data from EPFR that for the week ending September 30, strong inflows in tech stocks have resumed after correction of Nasdaq in early September.

Among other important trends in equity markets, the BofA report notes the largest inflows to Japanese assets in 9 weeks, the largest in 4 weeks to emerging markets and the largest outflow from Europe in 13 weeks.

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