Trump Focuses on Midterm Election Policy Adjustments, U.S. Stocks Face Sector Risks

Ned Davis Research Chief US Strategist Ed Clissold has introduced the concept of the "Big MAC Trade," referring to the core theme of the US stock market in 2026 as the policy direction and its impact before and after this fall's Congressional elections. US President Trump has recently issued a series of policy statements, focusing on boosting the Republican Party's chances in the November elections and proposing adjustments in areas such as credit card interest rates and defense contractor dividends, which has triggered declines in banking and defense sectors. Clissold believes that industry policy adjustments ahead of the midterm elections will become a market risk.