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Trump’s potential loss of the trifecta—what does it mean for the Indian market?

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Will Trump blink and make a last-minute Iran deal (just before the midterm election) as a face-saving exit from his mess? As the US approaches its midterm elections on November 3, 2026, financial markets in India are closely watching whether President Trump could lose Republican control of one or both chambers of Congress (House & Senate). Current polling aggregates show Democrats leading on the generic ballot by roughly 8–9.5 points, while Trump’s net approval rating sits deeply underwater, in the range of –23 to –29. Losing the "trifecta"—unified Republican control of the White House, Senate, and House—would turn Trump into a classic lame-duck president for the final two years of his 2 nd term (like the 1st). For India, the stakes are high. The bilateral relationship has already experienced friction over tariffs linked to Russian oil purchases, H-1B visa restrictions, and delayed progress on a comprehensive trade agreement. A constrained Trump administration would alte...

Trump is set to be a lame-duck president after the US midterm; potential impact on the market

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  The US heads into the November 3, 2026 midterm elections against a backdrop of elevated geopolitical tension, aggressive trade policy, and a president whose net approval ratings have remained deeply underwater for much of his second term. President Trump faces the classic midterm headwind that has afflicted nearly every modern president: the party controlling the White House almost always loses seats in Congress. Current polling aggregates, forecasting models, and prediction markets all point toward a high probability that Republicans will lose control of the House of Representatives and face a competitive fight for the Senate. A Democratic House, or a fully divided Congress, would constrain Trump’s ability to advance major domestic legislation and turn the final two years of his term into a period of legislative (policy) paralysis. At the same time, the president retains substantial unilateral authority over tariffs, sanctions, and military posture—particularly regarding the ong...