The Democrats have taken control of Congress in the 2026 midterm elections. What does this mean for investors? Steven Chiavarone, chief investment officer for global equities at Federated Hermes, says: Prior to the US midterm elections, we felt that only two outcomes could meaningfully change monetary and fiscal policy: a GOP sweep creating wider voting margins or a Democratic blue wave large enough to produce filibuster- and veto-proof majorities. While the Democrats have retaken both chambers of Congress, it appears not to be enough to create the latter scenario. In the coming weeks, the stock market may experience volatility, but we think it should ultimately rise. Historically, the 12 months following midterm elections have been good for US equities. In fact, it has been 88 years since the S&P 500 last posted a negative return in that period, with an average of 14%. Why? One explanation is that the poor result of the president’s party motivates it to champion economic policies that