Election bend in the markets

Democrats won both chambers of Congress in the U.S. midterm elections, shifting the balance of power in Washington and prompting global markets to reassess their positioning. Expectations that the war with Iran could end, alongside uncertainty over the policy direction the new Congress will pursue, are the main forces shaping market sentiment. The outcome matters because divided or newly aligned control of Congress can alter fiscal, regulatory and foreign-policy trajectories that investors had priced in. What to watch next is whether the anticipated de-escalation with Iran materializes and how the incoming Congress's legislative priorities take shape.