Political Gridlock Set as Investors' Base Case for Election -- Market Talk

1013 ET - Investors will spend this evening monitoring incoming U.S. midterm election results with the assumption that the better Democrats perform, the more uncertain the market will become about AI regulations, BMO analysts say in a report. The theme of gridlock is now their base case, particularly with Trump now promising to lean into his veto power if Democrats take both chambers of Congress, they say. Even against that backdrop, the stock market is holding up relatively well, though its too soon to say whether that description will survive the week, the analysts say. "But for the time being, it remains the case," they say. (dean.seal@wsj.com)

(END) Dow Jones Newswires

November 03, 2026 10:13 ET (15:13 GMT)