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Investors are watching the fallout from the U.S. midterm congressional elections amid concerns that markets could become more volatile, particularly AI stocks, and that sectors such as data centers, defense, healthcare, banking, and cryptocurrencies could be affected. Polls point to Democrats being favored to win the House, while the Senate race remains close. UBS strategists put the odds of Democrats controlling both chambers at 50%, of Democrats winning the House while Republicans retain the Senate at 40%, and of Republicans keeping control of both chambers at 10%. A Citi analyst said stocks would likely react positively if Republicans retain the Senate, and negatively if Democrats gain more influence there.
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