Voters Give Democrats Control of Congress
Investors sold AI-linked shares as they weighed tougher scrutiny of data-center spending and a weaker outlook for tax cuts, traders said.
- 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.
116 Articles
116 Articles
Democrats deliver major blow to Trump as party takes control of Congress
A growing wave of frustration with Donald Trump has reshaped American politics, with Democrats making historic gains in the 2026 midterm elections and taking control of both chambers of Congress. The results represent a significant setback for the US president, whose Republican Party has lost ground in traditionally conservative strongholds, including Texas, Kansas and South Carolina. For Democrats, the victories... Read more →
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…
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