The Unpredictable Equation: What a Divided Congress Means for Markets As the November 3 midterm elections approach, investors are bracing themselves for a potential shift in power on Capitol Hill.
A divided Congress under President Trump is forecasted by prediction markets, prompting concerns about stock market returns.
Historical data suggests that when the party holding the White House loses seats in the House of Representatives during midterms – as has happened 18 times out of 20 since World War II – it can lead to negative market sentiment.