TradingKey – As the 2026 U.S. midterm elections approach, Wall Street is beginning to reassess potential investment opportunities arising from shifts in congressional power. On November 3, the U.S. will elect all 435 seats in the House of Representatives and about one-third of the Senate seats, with the results set to impact fiscal budgets, defense spending, energy policy, financial regulation, and cryptocurrency legislation over the next two years.

The scenario currently drawing significant market attention is one in which Republicans retain control of the Senate while Democrats win a majority in the House of Representatives, creating a check-and-balance dynamic between the White House and Congress. Morgan Stanley believes that when a…