US Sectors Brace for Policy Shifts Ahead of Midterms

As US midterm elections approach, sectors like clean energy and housing could benefit from a Democratic showing. Meanwhile, AI and defense stocks face potential legislative scrutiny.

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FILE PHOTO: A view of windmills and power lines near Tracy, California, U.S., August 17, 2022. REUTERS/Carlos Barria/File Photo

Corporate America is bracing for a potential power shift in Washington as the United States midterm elections approach, with clean energy and housing stocks positioned for gains. Prediction markets peg the odds of a Democratic sweep at 72%, introducing regulatory risks for artificial intelligence and defense. Investors are recalibrating portfolios as heightened oversight threatens to reshape sectors ranging from technology to finance.