From the point of view of the economy, the loss of the Republican majority in the House of Representatives means President Donald Trump will have more challenges to passing many promised new reforms, especially tax cuts and the repeal of the Affordable Care Act. It also jeopardizes the implementation of an infrastructure plan.
The reason that the stock market at first reacted positively is because the results were already discounted in the selloff before, and the relative strength of the Trump administration remains.
