Trump concedes 2026 midterms as Democrats sweep House and Senate; markets retreat

President Donald Trump on Wednesday congratulated Democrats after they won control of both chambers of Congress in the November 4, 2026 midterm elections, telling CBS News in a phone call: "My message is, congratulations to the Democrats, and I look forward to working with you for the good of our country." The result hands Democrats unified control of the House and Senate, with The Hill reporting that the party took key Senate seats in Texas, South Carolina and Kansas, among others. Trump attributed the Republican losses to his absence from the ballot, saying "I wasn't on the ballot, and there was nothing that could be done about that... If I was, we would have won," and acknowledged on Truth Social that Republicans would otherwise have won "IN A LANDSLIDE!" Financial markets reacted quickly to the political shift: investors sold AI stocks and moved into government bonds on Wednesday, sending Treasury yields lower, while oil prices ticked slightly higher amid uncertainty over the ongoing Iran war, according to Ground News business coverage.

What happened

The midterms delivered a decisive rebuke to the president's party. Democrats flipped both the House and the Senate, ending Republican control of Congress and setting up divided government for the remainder of Trump's term. The Hill reported Democratic Senate wins in traditionally Republican-leaning states including Texas, South Carolina and Kansas.

Trump conceded the result in a call with CBS News, offering congratulations and a promise of cooperation. He also identified what he saw as the causes of the defeat. "People agree with what I'm doing on Iran, but they really probably weren't willing to do the short-term consequence of paying more for gasoline," he said, referring to the economic fallout of the war. Asked when the conflict would end, Trump said it concludes "when I say it's over, basically."

Speaking to Fox News, the president offered a further explanation, saying voters "didn't like the candidates" and conceding that "the Democrats did a good job... They fought hard." He suggested cooperation with the new Congress remained possible on "many things."

At the same time, Trump signalled that he intends to use his executive powers as a check on the Democratic majority. "I have total veto power and I'm sure we'll be able to work things out... Otherwise I'd just veto everything and they're not gonna want that," he said.

Why it matters

The flip of both chambers fundamentally alters the balance of power in Washington. Congressional Democrats will gain subpoena authority and committee chairmanships, including oversight of the administration. Incoming House Oversight chairman Rep. Robert Garcia (D-Calif.) told Trump's team to "Lawyer up," according to The Hill, which reported that "Democrats will get new power to probe Trump's DC projects if they win back the House." The Hill's election-night coverage also placed Florida at the center of the night's open questions, listing Florida Republicans Ashley Moody and Byron Donalds among its trending election topics, and Florida-linked administration projects could fall within the scope of the promised investigations.

The market response underscores the economic stakes. The Ground News business coverage recorded a flight from AI stocks into government bonds on Wednesday, pushing Treasury yields down, while oil ticked higher on Iran-war uncertainty. A Congress hostile to the administration's agenda, combined with a president threatening wholesale vetoes, raises the prospect of prolonged legislative gridlock on spending, and any standoff over funding carries direct market consequences.

How it is being covered

Ground News lists 335 sources carrying the story, with 147 rated, split 23 percent left, 40 percent center and 37 percent right. Of the rated sources, 108 of 147 carry high or very high factuality ratings. Ground News flags no blindspot in the coverage, meaning no major partisan side is absent from the reporting on the concession and the market reaction.

What to watch

• Whether Trump follows through on the veto threat, and whether congressional Democrats can reach the two-thirds majorities needed to override him on any bill.
• The launch of House Oversight investigations under Rep. Garcia, including any probes touching Florida-linked administration projects.
• The trajectory of the Iran war, which Trump says ends "when I say it's over," and its effect on fuel prices that he himself cited as a driver of the defeat.
• Whether the bond and equity moves of Wednesday persist, particularly the rotation out of AI stocks and the decline in Treasury yields.
• Senate and House organization in the new Congress, including committee assignments and leadership votes, in the states The Hill flagged, including Florida.

By the numbers

Source snapshot