10 week countdown to US midterm elections: Wall Street wary of 'congressional upheaval' causing market turbulence According to BlockBeats, on August 26th, as the 10 week countdown to the 2026 US midterm elections approaches, the Democratic Party is currently leading by about 6 percentage points in the general congressional vote, and the market is beginning to assess the impact on financial markets if it regains control of Congress. Analysis suggests that if the Democratic Party takes control of Congress, the United States may enter a state of "divided government," with major legislation or a long-term political tug of war. Raymond James analyst Ed Mills said that the market volatility in the past two years has been more due to executive actions rather than legislation. If Trump encounters congressional constraints, the White House may push policies forward through more frequent and aggressive executive orders, especially tariff measures, thereby increasing market uncertainty. At the same time, the issue of the US debt ceiling has become another major risk on Wall Street. The market expects the US government to reach a debt ceiling of approximately $41.1 trillion by mid-2027. TD Securities warns that if the Democratic Party controls Congress, it may use the debt ceiling to force the Republican Party to make policy concessions, leading to a debt ceiling deadlock or pushing up US bond yields and exacerbating market volatility. Short term US bonds may face selling pressure as the "default trigger day" approaches. In addition, if the election results are delayed for a long time due to vote counting or legal litigation, the market may experience "election chaos" again, and risk aversion may heat up and drive up volatility. Analysts point out that what Wall Street currently needs most is a clear and predictable election result. [Original link]