In financial markets after the U.S. midterm elections, attention is focused on developments in AI regulation and tariffs, but views are spreading that the overall impact will be limited.
Regarding financial markets after the U.S. midterm elections, major U.S. financial institutions view the impact on the overall market as limited. While the Democratic Party may take control of Congress, views are spreading that major legislative changes will be difficult. Investors are focused on developments in AI policy, with tighter AI regulation emerging as a key issue.
Reports say inflationary pressure is creating headwinds for the Republican Party, and some speculate that the Democrats could retake the majority in the House. The Democrats are also seen as having an advantage in the Senate.
Budget-related bills and other legislation require passage by Congress and could be stalled by partisan conflict. At the same time, the president can veto bills passed by Congress, so tax and regulatory measures led by the Democrats are also likely to face obstacles. Gera said that if major policy changes become more difficult, markets would become more stable, which would be positive for equities.