Market News

Investing.com -- U.S. stocks could receive approximately $11 billion in weekly inflows as annual tax refunds are distributed through mid-April, Deutsche Bank strategist Parag Thatte wrote in a note.

The strategist noted that the period from mid-February to mid-April typically represents about one-third of annual inflows to US stocks.

As such, Deutsche Bank economists anticipate an additional $50 billion to $100 billion in individual tax refunds this year, which may also boost consumer spending.

Thatte cautions that the positive impact on equity flows might be less significant than in 2021, when fiscal stimulus payments were substantially higher. However, the strategist added that market perceptions of growth and risk are also major factors in determining whether these refunds will translate into market gains.

Thatte notes that "risk appetite so far this year has been fragile," referring to AI-led selloff in software names.

In separate analysis, the Deutsche Bank team reported that global earnings increased approximately 15% in the fourth quarter, reaching their highest level in three-and-a-half years, primarily driven by emerging markets and the US.

Deutsche Bank also raised their estimates for the first quarter and full-year 2026, with South Korea and Taiwan seeing significant upgrades due to artificial intelligence demand.