This is an overly simplistic view in my opinion. #1 assumes a strong relationship between the stock market and the overall economy which hasn't been true in recent years (corporate profits are growing way faster than the economy). #2 assumes that the Fed printing money will decrease the value of the dollar, which it might, but in the last 10 years, the Fed has greatly increased the money supply and the dollar has strengthened a lot.

It's best to use terms like the Fed, the US government and US corporations rather than "the US". They're all different.

The possible scenarios investors see are much more varied and nuanced than the two options you've outlined.