After Democrats seized control of Congress in Tuesday's midterm elections, investors are focused on the risk of standoffs over the government's borrowing limit, with the potential for political brinkmanship to unsettle markets, Reuters reported.
Democrats wrested the Senate and the House of Representatives away from President Donald Trump's Republican Party, prompting investors to consider the impact on the nation's finances and the next round of negotiations over the government's debt limit.
The government is unlikely to hit the debt ceiling until late next year, but Democrats could wield the so-called X-date — the point at which the Treasury runs out of room to meet its obligations — in budget or other negotiations with Republicans.
In the near term, analysts are watching December 11, the date by which Congress needs to reach agreement to fund the federal government.
Fiscal worries have loomed over markets this year, weakening confidence in U.S. Treasuries, as the national debt topped $40 trillion.
