Wall Street braces for Democratic gains as 2026 midterm election nears

Investors expect a blue wave in next week's midterm election , as Democrats surge in polls and President Donald Trump 's approval rating remains low. Public polling suggests Democrats are likely to take control of the House of Representatives, and analysts who parse what politics means for investors are in overdrive to tell their clients how to prepare for what Congress will look like after the Tuesday election. Concern about the spending plans and priorities of a Democratic-controlled Congress permeates analyst reports reviewed by CNBC.