Citi says Senate control is the key variable for US stocks next week

The story so far: Citi US midterm market outlook

Citi Research said a Democratic sweep is largely priced in, with the real risk in Republicans unexpectedly holding the Senate or Democrats winning more than 53 seats. Citi now says a Republican Senate hold could spur a year-end US equity rally, and state elections may affect data-centre approvals.

1. 1 Nov 202610:34 UTC

   Citi says Senate control is the key variable for US stocks next week

   Citi Research strategists Scott T Chronert and Patrick Galvin said in a 30 Oct note that a Democratic sweep is largely priced in, and the real risk lies in two tail scenarios: Republicans unexpectedly holding the Senate, or Democrats winning more than 53 seats.

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2. 3 Nov 202610:26 UTC

   Citi says Republican Senate hold could lift US stocks by year-end

   Citi says markets have largely priced in Democrats winning both chambers of Congress, and an unexpected Republican hold on the Senate could spur a year-end US equity rally. State elections may also affect data-centre approvals and slow new computing capacity, it says.

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