US midterms and market positioning
Voting is underway in the midterms, which will decide control of Congress. Deutsche Bank notes the S&P 500 has historically gained about 7% in Q4 of midterm years, while the Nasdaq is coming off a sharp selloff.
What we know
FT frames the vote as a referendum on Trump. Deutsche Bank's seasonality data is bullish for stocks. The Nasdaq just had its biggest 3-day drop since Liberation Day (-6.1%), and hedge funds were hurt by October's AI rout. Reuters strategists expect a stronger dollar. Musk's $474M midterm spending and a possible Trump pardon of Musk if Democrats win are drawing attention.
Sources
“Millions of Americans are heading to the polls to vote”
View post →By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.