The outcome of the US midterm elections on November 3rd will influence investor expectations regarding AI capital expenditures, the fiscal deficit, and debt ceiling negotiations, thereby impacting the performance of US stocks, Treasury bonds, and the US dollar. If the Democrats gain full control of Congress, they will strengthen oversight of the AI industry; if Congress is divided, budget disputes and debt ceiling negotiations will likely stall; if the Republicans control both houses, policies such as tax cuts, increased defense spending, and deregulation will continue, exacerbating the US fiscal deficit and debt pressures. AI regulation, fiscal sustainability, and the 2027 debt ceiling negotiations will be key factors influencing the performance of US assets.
