Milford sees US policy gridlock supporting stocks after Democratic midterm sweep
SPY•Milford sees Democratic control of Congress as more likely to produce policy gridlock than sweeping changes, potentially supporting US stocks. It says state-level restrictions could slow AI data center construction, while inflation and Middle East conflict risks could cloud the post-election rally.
1. Policy and market outlook
Milford said Democratic control of Congress is more likely to result in policy gridlock than sweeping changes, potentially supporting US stocks. State-level restrictions could slow AI data center construction and raise project costs, while benefiting established cloud providers with existing capacity. Slower AI infrastructure spending could ease pressure on market interest rates, supporting homebuilders and industrial stocks.
2. Risks and investor plans
Milford said persistent inflation and Middle East conflict risks create uncertainty for the post-election stock rally, while tariffs are likely to remain in place. It said New Zealand investors generally should not overhaul long-term investment plans based on one election result or a single-day rally.
