Republican victory in Congress expected to give markets a shot in the arm

The S&P 500 is down about 20% since the start of the year as the economy grapples with red-hot inflation and a possible looming recession. A Republican victory in the midterm elections would be a welcome pop for investors who have seen their portfolios shrink.

History is also a guide to how markets react following midterm elections. In the lead-up to the 2018 midterm elections, Republicans, like this year, had a GOP federal trifecta with former President Donald Trump in office. The Democrats were able to regain the House, and the S&P 500 grew by more than 2% the following day.

that another factor that would cause markets to do well would be if both parties accept the results of the midterm elections. While, in the short run, markets are expected to like the newfound certainty and potential gridlock, the longer-term effects of a divided government could be less-than-ideal.

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Biden-voting district could send Connecticut’s first Republican to Congress in a decadeDemocrats were confident this past summer that a Supreme Court ruling overturning Roe v. Wade would drive angry voters to the polls and keep the party in the House majority. But in the final days before the election, Republicans have gained ground with voters who say the economy is their No. 1 priority, putting districts previously seen as safe for Democrats, like Hayes’s, in play. They finally opened their eyes and now see what the corruptocrats are all about. And then again, maybe not. Origin of story Cook changed this district as a toss up. Consequences of it going blue for a the Dems. Nada for a the Post.
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