With mere hours left on Election Night before polling closes across America, traders on prediction market platform Polymarket are forecasting an 89% chance (as of 7 p.m. ET) that Democrats sweep and retake both the House of Representatives and the Senate. For context, Republicans enter the midterms with 218 of 435 House seats and 53 of 100 Senate seats. The potential implications of midterm elections on the Dow Jones Industrial Average (DJINDICES:^DJI), S&P 500 (SNPINDEX:^GSPC), and Nasdaq Composite (NASDAQINDEX:^IXIC) are massive. If a "blue wave" does unfold, things could get dicey, at least over the short run, for a historically expensive stock market. President Trump may soon be working with a divided government. Image source: Official White House Photo by Molly Riley.
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