Wall Street Braces as Voters Head to Polls for High-Stakes US Midterm Elections

Investors are closely watching the US midterm elections alongside 36 gubernatorial races, assessing potential impacts on fiscal spending, artificial intelligence policy, and infrastructure. Major fixed income managers, including PGIM Credit and Morgan Stanley Investment Management, have paused new positioning amid a record $40 trillion national debt and 10-year Treasury yields trading at approximately 4.9%. Market participants view a divided Congress as the most favorable base case to restrain sweeping legislation. The vote coincides with broader market pressure, with the Nasdaq 100 sliding 10% into correction territory from its October peak over heavy AI capex scrutiny.