Tomorrow’s midterms could matter more for investors than usual, since so much of the stock market now rides on AI, and I think the bond market’s reaction will tell you more than the stock market’s.
Key Points
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Tuesday’s midterm elections will decide whether Republicans keep control of Congress or Democrats gain enough seats to check President Donald Trump’s agenda.
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Stocks have historically done well in the year after midterms, but AI companies are increasingly borrowing to build data centers, which leaves the industry sensitive to any move in bond yields.
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Rather than watching whether the S&P 500 rises or falls after the results, investors may learn more from how Treasury yields respond.
