Investors poised for US gridlock as Democrats projected to win control of House
The outcome could hold broad implications for market-sensitive sectors, including AI infrastructure, fiscal policy and defence spending.
New York: Investors anticipate potential market challenges due to Democrats' projected victory in the US House of Representatives during Tuesday's midterm elections, while the Senate remains uncertain. The decision could impact regulation, fiscal policies, AI, defense spending, and various sectors such as healthcare, banking, and cryptocurrencies.
President Donald Trump's Republican Party previously held both legislative chambers. Market strategist Tai Hui noted that even with a potential "blue wave," Democrats are unlikely to secure the two-thirds supermajority needed to override Trump's vetoes. Stock index futures declined on Tuesday, with the S&P 500 futures dropping 1.1% and Nasdaq futures falling 2.4%.
Analysts expect market recovery historically following midterms, but the uncertainty surrounding Democrats' control of both chambers may raise concerns.
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