Trump's Republicans hold narrow edge in US House Senate majority

As election results continue to pour in, Republicans, led by Donald Trump, have secured a slim advantage in the battle for control of the US House of Representatives, with 211 seats confirmed.

This leaves them just seven seats shy of the majority in the 435-member chamber, with 24 races still undecided.

Meanwhile, Republicans have solidified their control over the Senate, holding at least 53 seats in the 100-member chamber. The final outcome of several closely contested races could still tip the balance further in their favor.

Republicans' narrow path to house majority

In the US House, Republicans are edging closer to retaining control but face a tough challenge as several key races remain undecided.

With 211 seats in hand, the GOP is just seven seats short of the 218 needed for a majority.

Democrats have managed to flip two significant seats in New York, including Laura Gillen's defeat of Republican Anthony D'Esposito in Long Island and Josh Riley's win against Marc Molinaro in the Catskills region.

These victories highlight the competitiveness of the race, especially in battleground districts such as California and New York, where final vote tallies could take days to complete.

Despite these setbacks, Republicans held on to several vulnerable seats, with centrist Republican Don Bacon fending off a challenge from Democrat Tony Vargas in Nebraska’s Omaha-area district.

To win back control of the House, Democrats would need to capture at least 18 of the remaining 24 undecided races.

This means the final outcome of the House majority could remain unclear for some time.

Senate majority provides Trump leverage for appointments

In the Senate, Republicans are set to retain a majority of at least 53 seats, with the possibility of expanding their influence to 55 if the results in Nevada and Arizona break in their favor.

This gives Trump significant power in shaping his administration’s appointments, including those to key cabinet positions, judicial nominees, and federal agencies.

Republicans’ control of the Senate allows them to confirm Trump’s choices for judicial appointments and key personnel in his administration.

However, with Democrats holding a minority that can use the filibuster to block legislation, Republicans will not have a free hand to push through all of Trump’s legislative proposals.

In particular, passing major pieces of legislation like tax cuts or immigration reform will require Republican unity or some degree of bipartisan cooperation.

Trump's policy agenda and wall street optimism

For Trump, full control of Congress—especially with the House in Republican hands—would create a strong platform for pursuing key elements of his economic agenda, including sweeping tax cuts, deregulation, and aggressive border control measures.

These policies are especially attractive to his business supporters and Wall Street executives who are looking for stability and pro-business measures.

During his first term, Trump garnered strong backing from financial sectors, particularly for his tax cuts, deregulation efforts, and push for a market-friendly environment.

His administration’s corporate tax cuts, in particular, were seen as a boon for businesses, especially large corporations, which benefited from a lowered corporate tax rate and more relaxed regulatory oversight.

With Trump’s re-election in 2024, Wall Street executives and corporate donors are cautiously optimistic about a return to these pro-business policies.

Many of these donors are eager to see a resumption of deregulation, tax relief, and less stringent financial and environmental rules.

For instance, Trump’s approach to financial regulations, including his rollback of Dodd-Frank provisions, was welcomed by many in the financial industry, who viewed the changes as a way to unlock greater market potential.

In particular, there has been notable interest in the potential appointment of individuals from Wall Street or the financial sector to key positions within a second Trump administration.

One such candidate under consideration for high-level posts is Dan Gallagher, a former SEC commissioner and current Chief Legal Officer at Robinhood.

Gallagher is popular among crypto advocates and those in favor of looser regulation on financial markets.

His name has been floated for potential appointment to the SEC, where he could influence the regulatory approach to emerging industries such as cryptocurrency.

While Wall Street anticipates a return to a more favorable regulatory climate, concerns remain about Trump’s unpredictable policy shifts.

His protectionist stance on trade, coupled with his unpredictable approach to foreign relations, especially with China and other global powers, could create long-term uncertainties for financial markets.

Nonetheless, for now, there is cautious optimism that Trump’s potential return to power could usher in another era of market-friendly policies and business-friendly deregulation.

As election officials continue to count votes and finalize results, the GOP’s narrow advantage in the House and the strengthened position in the Senate leave the path open for Trump to pursue his economic and political goals.

However, much depends on the final outcomes in the remaining races.

Should Republicans retain both chambers, Trump will have the legislative leverage needed to implement his agenda, with significant backing from Wall Street and corporate America.

In the coming days, as the final seats are decided, all eyes will be on Washington to see if Trump’s Republicans can capitalize on their narrow advantage or if Democrats can make a late surge to retake control.

The results will have profound implications for the nation’s political landscape and its economic future.