Polls pointed to a Democratic House victory, with the Senate still too close to call, while early results showed the party leading in several states. (EPA Images pic)NEW YORK: Investors faced the potential for tougher regulation and oversight in areas such as AI as well as for legislative gridlock that could complicate the fiscal picture, as Democrats gained ground in the battle to wrest control of Congress from the Republicans.

Decision Desk HQ projected the Democrats to win control of the House of Representatives in Tuesday's US midterm elections.

The party's victory in the House was widely expected, though control of the Senate remained in the balance. President Donald Trump's Republican Party controlled both chambers of Congress during the first two years of his second term.