Clean sweep or split Congress, these are the trades to make on the midterms outcome, says JPMorgan

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Published: 2026-09-03T10:59:49.094Z • Permanent link

Major financial institutions are preparing for a major shake-up in the US Congress, with analysts at JPMorgan predicting a "clean sweep" for the Democratic Party in the upcoming midterm elections. According to a report by JPMorgan's analysts, the party's control of the Senate and House of Representatives will have significant implications for the financial sector, with potential changes to tax policies, regulations, and market access.

Markets are already showing signs of anticipation, with stocks such as Visa, Mastercard, and PayPal experiencing increased volatility in the lead-up to the elections. Visa's stock price has risen by over 10% in the past month, while Mastercard's has increased by nearly 15%. PayPal's shares have also seen a significant uptick, rising by over 20% in the past quarter. These companies are all major players in the payment processing industry, and any changes to the regulatory environment could have a significant impact on their business models.

JPMorgan's analysts predict that a Democratic-controlled Congress will lead to increased regulations on the financial sector, potentially limiting the ability of companies like Visa and Mastercard to operate in certain markets. They also expect increased scrutiny of the tech industry, particularly with regards to issues such as data privacy and security.

The implications of a Democratic-controlled Congress will be far-reaching, with significant impacts on the financial sector and the broader economy. Companies like Visa and Mastercard, which have been major beneficiaries of the current regulatory environment, will need to adapt to any changes. This could involve significant investments in new technologies, such as blockchain and artificial intelligence, in order to remain competitive.

Research communities will also be impacted, as any changes to regulations could limit the ability of researchers to conduct studies on the financial sector. This could have significant implications for the development of new financial products and services, as well as our understanding of the underlying mechanisms of the financial system.

Markets will also be affected, with potential changes to tax policies and regulations leading to increased volatility. The impact on individual investors will depend on their specific investment portfolios, but it is likely that many will need to make adjustments in order to stay ahead of the curve.