The midterm races Wall Street and other financial firms are watching
SPY•Financial firms and investors are watching competitive US midterm races for their potential effects on financial policy and political allies. Ten gubernatorial races could determine the course of $2.5 trillion in planned investment, including data center projects.
1. Senate races in focus
The Ohio, Kansas, Texas and Nebraska Senate contests are being watched for their potential effects on financial regulation, cryptocurrency rules and credit card swipe fees. In Ohio, crypto groups have spent more than $50 million to defeat Democrat Sherrod Brown, while prediction markets on Friday priced his victory at 69.5%. Polls showed Brown leading by as many as five points or tied.
2. Fees and financial policy
In Kansas, Republican Senator Roger Marshall is in a close race against Democrat Adam Hamilton; Marshall has backed legislation capping credit card swipe fees, which banks have opposed. In Texas, Republican Attorney General Ken Paxton and Democrat James Talarico are in a close contest; Paxton has led investigations and lawsuits against financial companies over climate and diversity policies. In Nebraska, Republican Senator Pete Ricketts, who supports crypto-friendly legislation, faces independent Dan Osborn, who has criticized swipe fees. Prediction markets priced victories for Marshall, Talarico and Ricketts at 55%, 66.8% and 71.7%, respectively.
3. Data centers and Congress
State and local authorities oversee data center planning and permits, making gubernatorial contests a focus for investors. Beacon Policy Advisors said 10 governors' races will determine the course of $2.5 trillion in planned investment; Texas, Georgia and Ohio were among the most competitive races it highlighted. House contests involving Financial Services Committee chair French Hill and Representative Sean Casten are also on the financial industry's radar.
