Sean Oliver, chief economist at Australian financial services group AMP, said
Democratic gains in the U.S. midterms could prompt tighter regulation—notably in
artificial intelligence—and, if seen as increasing chances of a Democratic
return to the White House in 2028, raise market concerns about higher taxes.
Those factors could be negative for U.S. equities and the U.S. dollar; markets
appear to be starting to price that in. Oliver added a Democratic victory would
not be unexpected, suggesting some of the impact should already be reflected in
prices.
