Democrats secured control of both chambers of Congress in the U.S. midterm elections, while also winning gubernatorial races in traditionally Republican states. The results raise questions about potential policy changes and their implications for economic growth, financial markets and asset classes.

For investors, one of the most significant developments is the prospect of tighter restrictions on data center development, which could weigh on sentiment toward artificial intelligence (AI) investment. At the same time, Democratic control of Congress could benefit the healthcare sector and consumer spending with opportunities to revisit planned reductions in federal healthcare and food assistance spending.

We think there are three key…