Investors are turning their focus to Tuesday’s U.S. midterm elections, which will determine control of Congress and could spur moves in everything from energy companies to cannabis stocks.
A split government could result in political gridlock that stymies major policy changes, an outcome that investors see as favorable for equities. Regardless of the winner, past midterm elections have ushered in a period of positive market performance, something investors would welcome after a year in which the S&P 500 has declined by nearly 21%.
The outcome puts a focus on shares of defence contractors, such as Lockheed Martin or Raytheon Technologies . The S&P 500 aerospace and defense index is up nearly 10% this year.Energy stocks have had a banner year, with the S&P 500 energy sector rising over 60% so far in 2022 while the broader index has slumped around 21%.
Freeland says cancel your globe and mail subscription
Fluctuations of elections Will affect a market's odds If Democrats be elected Taxed money go abroad If Republicans elected Taxed money stay inside But democracy affected Will be with a rights resized
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