How Markets May React to Surprise Republican Election Sweep
- Some analysts start to assess possibility of GOP victories
- New stimulus, more Fed criticism, spending questions in focus
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With just 11 days to go till the midterm elections, analysts have started considering the market impact of some less-likely outcomes. Specifically, what would happen if Republicans were to hold the U.S. House of Representatives and gain seats in the Senate.
While polling suggests Democrats are likely to capture the House, some research firms are looking at what would happen if Republicans pull an upset and hold both legislative chambers. The S&P 500 Index has gained about 24 percent since U.S. President Donald Trump’s November 2016 election, though it’s down for the year, as a boost from tax cuts and deregulation has faded and the Federal Reserve has raised interest rates.