Kalshi odds give Democrats a 93% chance of winning the House and 74% chance of taking the Senate.
Historically, the S&P 500 has finished higher 12 months after all 19 midterm elections since 1950, averaging a gain of 15.4%. ๐ข
Across elections, divided government has historically produced an average 15% gain ๐ข one year later, compared with 11.5% under one-party control.
Looking specifically at the 1986, 1990 and 2006 midterms, when Democrats controlled Congress under a Republican president, the S&P 500 averaged:
Next day: -0.5%
After 1 month: +3.4%
After 1 year: +10.9%