The US midterm elections are just one day away. Attention is focused on how the power structure of the federal Congress will change in the elections to be held on November 3 local time, and what impact the results will have on financial markets. The key variable is whether the Republican Party will retain its majority status in the Senate and House, or whether the Democratic Party will secure control of Congress. The election results could affect taxes, fiscal policy, defense, and industrial policy during the remainder of Donald Trump's administration. In the domestic stock market, stocks related to renewable energy, artificial intelligence (AI), and power infrastructure are also drawing attention.

◆ All 435 House Seats and One-Third of Senate to Be Contested Midterm elections are held in the middle of a president's term. This time, all 435 members of the federal House of Representatives and about one-third of the Senate will be elected. House members serve two-year terms and senators serve six-year terms, with about one-third of Senate seats up for replacement every two years. Although this is not a direct presidential election, it carries great political significance as it reflects voters' evaluation of the sitting president and the ruling party.

◆ Budget, Tax Reform, and National Debt Negotiations… Election Results a Variable for Matters Requiring Congressional Approval Currently, the Republican Party holds control of the White House and both chambers of Congress. However, if the composition of the congressional majority changes through this election, the environment for the administration's policy push could also shift. In particular, the election results are expected to be a significant variable on matters requiring congressional approval, such as federal government budget negotiations, tax reform, and national debt-related negotiations.

[Investment Notice: This article was written based on an analysis by Samsung Securities regarding the US midterm elections, and policy and sector outlooks based on election results are not confirmed facts. Past stock price performance does not guarantee future returns, and losses and responsibilities arising from investment rest with the investor. This article was written with some assistance from AI.]