New Delhi, Nov. 3 -- The upcoming US midterm elections could significantly alter the relationship between corporate America and the federal government, potentially changing the regulatory and financial outlook for major companies across several industries.

A Democratic victory in either or both chambers of Congress could give the party greater authority to investigate businesses, scrutinise federal spending and demand changes to legislation. However, President Donald Trump would retain significant executive powers, including control over tariffs, immigration and federal regulations.

Historically, financial markets have performed relatively well under divided government. According to a Morgan Stanley analysis, the S&P 500 has delivered a...