These stocks could benefit from a midterm election shake-up, JPMorgan says
The midterms could reshuffle stock market winners. Here are JPMorgan's picks.
TL;DR
- JPMorgan strategists anticipate U.S. midterm elections will impact stock market winners, favoring stock picking.
- Potential stock beneficiaries are categorized into "gridlock" (split Congress), "Blue Wave" (Democrats control), and "Red Wall" (Republicans control) scenarios.
- Congressional gridlock has historically been associated with positive S&P 500 returns.
- Gridlock beneficiaries include healthcare, defense, civil infrastructure, and select technology companies.
- "Blue Wave" beneficiaries may include hospitals, Medicaid-focused managed care, environmental services, and renewable-exposed utilities.
- A "Red Wall" scenario could favor data centers, traditional energy, nuclear power, financials, defense, and cybersecurity.
- JPMorgan expects AI capital expenditure momentum to remain intact and strengthen post-midterms.