Stocks, Dollar Slide as Wins for Democrats Jolt AI Bets
The setback raises the odds of tighter oversight on AI spending and tax policy as investors shift into bonds and safer currencies.
- Voters across America are casting ballots in midterm elections on Tuesday to determine control of Congress for the next two years, with results carrying implications for AI oversight and debt ceiling negotiations.
- Since President Donald Trump's second term began in 2025, the S&P 500 has gained about 27% amid massive AI spending, but recent market turbulence has prompted investor concerns about complacency heading into these elections.
- Wolfe Research's Tobin Marcus said healthcare is "the biggest focus," while Evercore ISI's Matthew Aks noted Democrats might target consumer budgets through credit card rate caps, potentially forcing Trump to veto or sign legislation.
- JPMorgan strategists said Republican control would provide the most supportive policy backdrop for AI infrastructure through deregulation, while Citigroup strategists noted Monday that Republicans keeping the Senate could be "a tailwind for equities into year-end."
- Evercore ISI warned the S&P 500 could retreat if the president "moves to kinetic escalation in Iran ahead of seating the new Congress in January," while budget deficits continue widening to about $2 trillion amid inflationary pressures.
94 Articles
94 Articles
The Democratic Party gained control of the U.S. Senate and House of Representatives after the November 3, 2026 midterm elections. The result changes the political balance in Washington and limits President Donald Trump's ability to push his legislative agenda through the last two years of his term. The victory was achieved after breakthroughs in traditionally Republican states. In Texas, James Talarico defeated Ken Paxton and won a senatorial se…
Party wins control of Senate and House while securing historic gubernatorial victories, dealing major political setback to Trump administration
Democratic sweep a bigger win for Asia than markets realize
Asia’s markets reacted to the Democrats’ sweep of Congress as if the region had lost. Over the next year, it’s likely to come out ahead. The early selling was loud and narrow. South Korea’s benchmark plunged as much as 4% before finishing the day 0.6% higher. Japan’s Nikkei fell around 3%, yet roughly 95 of […] The post Democratic sweep a bigger win for Asia than markets realize appeared first on Asia Times.
The MAGA battle and the day after for Democrats - The New York Times sees a historic turning point, but warns that Trumpism is not over
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