JPMorgan says the consensus is wrong and a Biden victory may be positive for the stock market

Democratic U.S. presidential candidate and former Vice President Joe Biden speaks during a Biden campaign event at a recreation center in Lancaster, Pennsylvania, U.S., June 25, 2020.
Mark Makela | Reuters

(This story is only for CNBC Pro subscribers)

Though the Wall Street consensus might view Joe Biden's potential victory as a negative for stocks, JPMorgan said Monday it thinks the Democrat's election could turn out to be a slight positive.

The bank's newfound optimism is based on its belief that the coronavirus will force Biden to moderate his policies that could create headwinds for American business.

That likely means that any plans to reverse the Trump-era corporate tax cuts may ultimately be softer than currently discussed and leave markets with a more diplomatic White House, according to JPMorgan's chief U.S. equity strategist.