LIVE MARKETS — Split US congress after 2026 midterms could boost healthcare stocks, Mizuho says
US equity index futures mixed, changes modest September import prices MM > estimate; export prices MM > estimate Euro STOXX 600 index up ~0.6% Dollar, US crude, gold, bitcoin all dip US 10-year Treasury yield rises to ~5.13% Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at Split Us Congress After 2026 Midterms Could Boost Healthcare Stocks, Mizuho Says A divided US Congress following the November midterm elections could serve as a "positive catalyst" for healthcare stocks by reducing policy uncertainty, Mizuho Securities analysts said in a research note on Friday. Mizuho expects Democrats to take the House of Representatives while Republicans retain the Senate in a 50-50 split, creating a "balance-of-power in Washington." Healthcare companies have historically performed better under divided government, and Mizuho expects gridlock to bring a "reduced likelihood of significant legislative changes." And that matters after what Mizuho described as two years of considerable legislative and regulatory changes. Following the nine elections since 1992 that resulted in a balance of power, managed care stocks tr
US equity index futures mixed, changes modest September import prices MM > estimate; export prices MM > estimate Euro STOXX 600 index up ~0.6% Dollar, US crude, gold, bitcoin all dip US 10-year Treasury yield rises to ~5.13% Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at Split Us Congress After 2026 Midterms Could Boost Healthcare Stocks, Mizuho Says A divided US Congress following the November midterm elections could serve as a "positive catalyst" for healthcare stocks by reducing policy uncertainty, Mizuho Securities analysts said in a research note on Friday.
Mizuho expects Democrats to take the House of Representatives while Republicans retain the Senate in a 50-50 split, creating a "balance-of-power in Washington." Healthcare companies have historically performed better under divided government, and Mizuho expects gridlock to bring a "reduced likelihood of significant legislative changes." And that matters after what Mizuho described as two years of considerable legislative and regulatory changes. Following the nine elections since 1992 that resulted in a balance of power, managed care stocks traded at an average of 13.3 times forward earnings, up from 12.5 times heading into the election.
The brokerage said diversified health insurers are best positioned, naming UnitedHealth Group as the top pick in its coverage universe. By contrast, a Democratic win in both chambers could revive fears of sweeping reform, including "renewed Medicare for All rhetoric," ahead of the 2028 presidential race. Hospital operators such as HCA Healthcare and Universal Health Services are also expected to see steady valuations, while clinical lab companies, including Quest Diagnostics and Labcorp, could see a near-term boost if Congress acts to delay planned Medicare payment cuts before year-end.
(Kamal Choudhury) *** Earlier On Live Markets: Semis' Seven-day Skid Puts Reversal In Focus Click Here The Slow Way Rates Matter For The Ai Trade Click Here Déjà Vu For The Cac 40 Click Here What's Next For The Ai Trade? Click Here Stoxx 600 Heads For Weekly Gain Click Here Europe Before The Bell: Futures Rise, Tech Jitters Ease Click Here Calm After Coreweave Shock, But For How Long? Click Here