India, Aug. 9 -- The 2026 midterm elections could become a major test for the US stock market. Bank of America strategists are warning that the current bull market could face a major hurdle after the elections in November. The bank sees a risk of a "big" reversal in stocks after the midterms.

The biggest political risk could be a Democratic sweep of Congress. Bank of America strategists led by Michael Hartnett said the election could become a referendum on "populist capitalism vs populist socialism." In simple terms, investors could face a major change in the political direction of the country if Democrats gain control of Congress, via Business Insider.

That political shift could make investors more cautious about stocks. BofA strategis...