SPY•Jefferies economist Mohit Kumar said a Republican loss of both chambers could weigh on technology and financial stocks, while benefiting some emerging markets. He also cited greater debt-ceiling impasse risk; Jefferies is not changing its views yet.
Jefferies economist Mohit Kumar said a Democratic win in both chambers could be negative for technology and AI stocks because of concerns about data-center expansion and energy costs, and negative for financial stocks because deregulation would be less likely. Some emerging-market countries could benefit from lower risk of unexpected tariff announcements, while the risk of political impasse over the debt ceiling could increase.
Kumar said Jefferies is not changing its views yet. The firm remains long technology but would look to scale down some risks going into the midterms.
