President Donald Trump Claims He'll "Veto Everything" if Democrats Retake Congress, and It Has Big Implications for the Stock Market
Democrats are widely expected to retake one or both houses of Congress, creating potential friction points for Wall Street.
On Election Night, traders on Polymarket predicted a 89% chance (as of 7 p.m. ET) that Democrats would gain control of the House of Representatives and Senate after the midterms. This potential "blue wave" could have significant implications for the stock market, particularly if Democrats retake both chambers. President Trump has expressed his willingness to veto legislation if Democrats take control, leading to increased gridlock and uncertainty.
While gridlock can sometimes benefit the market by locking in historically low tax rates, the potential for debt-ceiling negotiations and AI regulation disputes could create challenges. Historical data shows that the S&P 500 has been higher six and twelve months after every midterm election over the last 75 years, indicating that the stock market has generally performed well regardless of political control.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
