The Economic Times

US elections 2026: The S&P 500 has never been lower a year after a midterm since 1950. Can 2026 break the streak?

Historically, after midterm elections, the S&P 500 tends to climb, with an average increase of about 15%. Currently, the index has risen nearly 13% since the previous midterm. Nonetheless, valuations are much higher than past averages, sparking concern. Analysts suggest the likelihood of a divided government might bolster stock performance trends, yet investors still approach this high valuation landscape with caution due to potential risks for future earnings.