Strategist says U.S. stocks may react to election surprise more than party outcome

Market strategist James Ooi said in a report that the U.S. stock market’s response to the midterm election may depend less on which party wins and more on how far the final result deviates from what investors had already priced in. He said that, regardless of the outcome, a clearer political setup could ease some of the uncertainty that has been weighing on market sentiment. Ooi added that if Republicans perform better than expected, industries tied to policy continuity could see a lift. He also said differences in priorities between the White House and Congress could slow the legislative process, while at the same time limiting the scope for large policy shifts. Ooi further pointed to the Texas governor’s race as another contest worth watching, given that the state is increasingly becoming a popular destination for artificial intelligence data center investment.