Midterm Elections Pull Treasury Yields and Dollar Two Ways

Midterm elections and the S&P 500 have a long track record, with the index gaining in the six months after midterms across the past 70 years. Fiona Cincotta, StoneX Senior Market Analyst, explains how the U.S. midterm election outcomes could pull Treasury yields and the U.S. dollar in opposite directions. A Democratic House alongside a Republican Senate points to gridlock in Congress and little policy progress. Under the Democrats, tighter regulation on banks, crypto and tech stocks could slow growth and weigh on Treasury yields and the dollar, while a less likely Republican sweep points to lighter regulation, tariffs and inflationary pressure that could lift yields and Federal Reserve rate hike expectations. The post-midterm rally pattern stems from pre-election uncertainty weighing on stocks before the vote and a relief rally once it passes. AI jitters, uncertainty over oil prices and double-digit gains already this year are putting that pattern to the test. 00:00 - Midterm Voters Feel Pump Pain 00:31 - Senate Race Steers the Dollar 01:05 - Split Congress Means Gridlock 01:31 - S&P 500's Post-Midterm Streak 01:54 - AI Jitters Test Relief Rally 02:18 - S&P 500 Rebound Hits a Test Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_fiona_cincotta&utm_content=share Like and subscribe for more financial market insights. #MidtermElections #StoneX #FionaCincotta #SP500 --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social