Jefferies, in its latest strategy report, noted that while the path for the U.S. Democratic Party to win the Senate in the 2026 midterm elections is becoming clearer (requiring a net gain of four seats, with Morning Consult data showing them leading in six of seven swing states), even if successful, its actual impact on policy and markets would be quite limited, primarily leading to political volatility rather than direct policy shifts. The report suggests that if the Democratic Party controls the Senate, the five powers it could wield—nomination confirmations, investigative powers, war powers, impeachment powers, and treaty ratification powers—would all have limited actual impact on policy and markets. Investors should instead focus on the policy agenda the Democratic Party is laying out in advance for a potential full governance in 2028.