Trump's defeat in the legislature gives the Democratic Party control of the US Congress

In the legislative election on November 4, 2026, the Democratic party began to command the House of Representatives and the US Senate, according to Diário do Poder. The result is a setback for Donald Trump, whose approval rating was around 32% shortly before the election.

According to the same publication, the government party lost seats in 19 of 21 mid-term races held since 1946. The exceptions cited were 1998, with Clinton, and 2002, with G. W. Bush. The historical pattern, therefore, already suggested difficulties for the governing party in this type of vote.

At the polls, the increase in the cost of daily life, the military confrontation with Tehran and allegations of embezzlement of public funds appeared as the main factors. Together, these themes formed the backdrop of an election that, according to Diário do Poder, was decided largely by the day-to-day economy.

One of the most symbolic results came from Texas. James Talarico was elected senator for the state, the first elected from Texas since 1988, and Gina Hinojosa defeated Governor Greg Abbott in the race for state governor. Additionally, Democrats scored victories in Maine, Iowa, Ohio, Kansas, North Carolina and South Carolina.

What is at stake is the balance of power in the two houses for the next two years. In practice, when one party controls the Chamber and the Senate, the other loses strength in defining the legislative agenda and the direction of the budget. For those who defend fiscal responsibility, the central question is who will have the final say on spending and taxes from now on.

Reflections on the stock market

According to Investing.com, after the Democratic victory, the price of gold miners rose, the value of digital structure companies dedicated to AI fell and the clean energy sector gained ground. These movements show how the market reacted to the change in political balance, but they do not allow us to predict the direction of prices or indicate what to do with these securities. The point for investors is to monitor how the new Congress will deal with the budget, interest rates and regulated sectors, topics that the established facts do not yet detail.

Automatically translated from Portuguese.