Although the final results are still being counted, it does not appear that the Republican party will experience the "red wave" of successes that would enable it to take over the House of Representatives and the Senate. It is increasingly likely, with ballots still to be counted, that the Democrats will retain control of the Senate but lose the House.
That will result in a change in Washington, DC, where the Democrats have controlled the White House, both chambers of Congress (the House and the Senate), and other institutions for the previous two years. And because of the potential deadlock that might occur, lawmakers won't likely be passing many laws over the ensuing two years. Without a deal on the debt ceiling, there might be no new tax laws, no control over government spending, and perhaps even no increase in spending if the US enters a severe recession.
However, that is all just noise in the markets' eyes. Markets abhor ambiguity, as you may have heard, and with a dysfunctional political system, you can at least be sure that very little significant will occur. One more thing: while politics fluctuate, they generally have very little, if any, impact on financial markets over the long term.
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