Veteran market strategist Ed Yardeni warns that a Democratic sweep in Tuesday's midterm elections could deliver a 'very cold shower' for stocks, even with Republicans retaining the White House. The article notes that Wall Street usually welcomes divided government, which makes the warning notable.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
midterm electionsDemocratic PartyWall StreetSPY
Open a keyword to see other news on the same topic.
Related tickers and likely impact
SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/30/2026 | 755.71 |
| Change that session | -1.77% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Will Midterm Elections Cause the Trump Bull Market to Crash? History Says There's Good and Bad News...
Under President Trump, average annual stock returns have been higher than under most presidents over the past 130 years, but the November 3 midterm elections could change that. As of October 24, Polymarket traders put a 66% chance on Democrats retaking both houses of Congress, while 26% expected Republicans to keep the Senate but lose the House. Retirement Researcher data shows the S&P 500 averaged 7.33% a year from 1926 to 2023 under a Republican president with a divided Congress, versus 14.01% to 16.63% in the other scenarios. A divided Congress may offer predictable fiscal policy because major legislation is less likely, but a prolonged government shutdown is a notable risk. With national debt at $40.4 trillion, the Dow, S&P 500 and Nasdaq have risen regardless of which party controls Congress, though the next two years could be bumpy.
- A bigger-than-expected win for Democrats in the midterms could deliver 'short-lived weakness' for stocks, strategists say
The article says a divided federal government is expected after the midterms, but the size of congressional majorities could matter greatly to markets. According to the strategists cited, a bigger-than-expected Democratic win could bring only short-lived weakness for stocks.
- Bettors Expect a Democratic Midterm Win. How Gold, Bitcoin, and Stocks Could Feel It
The article says a Democratic Congress could reshape spending, war funding, AI rules, and executive power. These changes could have knock-on effects for markets.
- Wall Street braces for Democratic gains as 2026 midterm election nears
- What a Democratic Congress Would Mean for Wall Street
The midterm elections are expected to put some industries in the crosshairs. The article outlines what to expect for sectors including AI and healthcare.
- Stock Market Action Plan : A reelection Week Primer | Investor Business Daily
Related markets
Latest news
- It may take weeks to tally the midterm election results. Here’s why Wall Street isn’t worried.
The article stresses that economic and political uncertainty must be distinguished when assessing markets. It argues that only economic uncertainty really moves the stock market.
- The bond-market rally is defying the typical investing playbook. Here’s why.
The U.S. economy grew at its fastest pace in over five years in the third quarter, according to the Commerce Department's initial GDP reading. Despite a run of robust data, Treasury bonds staged a surprise rally in October.
- Entergy Q3 Earnings Call Highlights
Entergy reported third-quarter adjusted EPS of $1.98, driven by customer growth, hotter weather, industrial sales and record peak demand, and raised the low end of its 2026 adjusted EPS guidance by $0.10. An amended agreement with Google for the West Memphis data-center campus is expected to add at least $500 million in Arkansas customer bill savings, and data-center and industrial load opportunities could total up to 17 gigawatts. Planned 2027–2030 capital spending rose by about $1.5 billion for battery storage, transmission and other growth investments. Chair and CEO Drew Marsh said the results reflected financial, regulatory and operational progress.
- Why Coeur Mining Bears Were Right Before The Drop
Coeur Mining shares lost 25.3% year to date including dividends, against a bullish case built on gold at $4,000, silver at $100, a 30% free cash flow margin and a 10x FCF multiple. The shares started the period at US$17.83; the bullish narrative put fair value at US$21.6 on 51.2% revenue growth and a 9.5% profit margin, while the cautious view set US$13.64 with 14.3% revenue growth and a 33.2% profit margin and flagged regulatory and jurisdictional risk. Q2 2026 revenue reached US$1.09b versus US$480.65m a year earlier, helped by the New Gold acquisition, and net income rose, but the net margin fell from 14.7% to 11.2%. The shares now trade at US$13.1, and the selected narrative assumes production growth, cost discipline and asset integration will sustain revenue and margin strength. The article concludes that the original thesis depended heavily on margins, not just metal prices or output.
- Bitcoin ETF outflows hit $643M, led by BlackRock and Fidelity
Bitcoin ETFs saw net outflows of $643 million on Friday, led by BlackRock at $233.7 million, followed by Fidelity at $201 million and Arc B at $129.5 million. The funds had also recorded net outflows in each of the four preceding sessions, and the week was still only down $202 million. The host notes that ETF flows tend to react to market moves because these funds don't trade 24/7 like Bitcoin, so the impact of after-hours events often shows up the next day. He contrasts this with the worst hack in history, worth $6 billion, and a sharp tech sell-off in which Intel fell 30% and Alphabet and Amazon were each down about 12% at one point overnight, while Bitcoin fell only 4–5% and gold also declined.
- BetterInvesting™ Magazine Update on Amazon.com and UnitedHealth Group
BetterInvesting Magazine's committee named Amazon.com (NASDAQ: AMZN) its “Stock to Study” and UnitedHealth Group (NYSE: UNH) its “Undervalued Stock” in the January–February 2027 issue, for informational and educational use. The organization says these picks are not endorsed or recommended for purchase by NAIC/BetterInvesting. It urges investors to conduct their own review using the Stock Selection Guide before making any investment decision. Non-members can access a limited trial version of the online analysis tools to view fundamental data for both companies.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.