US Midterm Elections 2026: What's Next for Stocks, Bonds and AI?

Beansprout Pro in brief

• The US midterm elections have reshaped the political landscape, with Democrats winning control of both chambers of Congress. This could have significant implications for financial markets over the next two years.
• Bond yields: Greater political gridlock could lead to lower longer-term US Treasury yields, although inflation remains a key risk.
• Equities: Further corporate tax cuts are now less likely, potentially weighing on corporate earnings and creating greater market volatility.
• AI investments: Tighter regulations on data centre developments could slow AI infrastructure spending, with implications for companies benefiting from the AI boom.
• Singapore equities: Changes in US Treasury yields could create opportunities for Singapore investors, although the impact is likely to differ across sectors. We share where we see opportunities and what risks we are watching.