US midterm elections enter final stretch, with markets repricing in advance around policies of the 2028 presidential election.

BlockBeats news, October 29 — The U.S. midterm elections are entering their final sprint, and investors are assessing the deeper impact on financial markets of a possible shift in congressional control, which may kick off early policy repricing around the 2028 presidential election.

If Democrats control both chambers of Congress, domestic legislation during the remaining two years of Trump's second term could fall into a more pronounced deadlock. Fiscal budgets, the government debt ceiling, and regulatory disputes over AI data center construction could all become key battlegrounds between the two parties.

Chris Grisanti, chief market strategist at MAI Capital Management, believes Republicans still have a strong chance of holding the Senate. If that scenario materializes, the stock market could see a brief relief rally, but the election's impact is expected to be short-lived.

Rami Sarafa, CEO of Cordoba Advisory Partners, believes that if Democrats expand their congressional influence, healthcare policy could face adjustments, and the expansion of AI data centers could encounter more resistance. However, because the relevant projects have long construction cycles, the election results will not abruptly end the AI investment boom.

Compared with short-term legislative gridlock, the 2028 presidential election could bring broader shifts in policy expectations.

JPMorgan's Center for Geopolitics has identified domestic policy gridlock, Trump's pursuit of a political legacy, and the launch of the 2028 presidential campaign as three main themes worth watching after the midterm elections. Its analysis covers issues including Iran and the Middle East, the Russia-Ukraine conflict, Latin America, and NATO. JPMorgan analysts noted that the midterm elections will open discussions about the direction of U.S. policy in 2028 and beyond.