Democrats have retaken both chambers of Congress, meaning President Trump will work with a Democrat-led Congress by early January. The article argues that AI, the main driver of the Trump bull market, could face more scrutiny, as Democrats are expected to limit data center expansion and tighten testing of large language and agentic AI models, while Trump favors minimal AI regulation. It notes the S&P 500 has been higher six and 12 months after midterm elections since 1950, but also that its CAPE ratio has exceeded 30 for only the sixth time in 156 years, and the five earlier instances were followed by declines of 20% to 89%. The author concludes that a blue wave alone is unlikely to end the rally, but could raise the odds of a crash, though that outcome is not guaranteed.
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S&P 500midterm electionsDemocratic Partyartificial intelligencevaluation
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Related tickers and likely impact
QQQ
• NeutralInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 11/03/2026 | 685.34 |
| Change that session | +0.62% |
SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 11/03/2026 | 754.41 |
| Change that session | +0.31% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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