A midterm election rally in the stock market is unlikely this year as the Fed’s rate hikes and recession risk weigh on investors, BlackRock says

Stocks usually rally after midterm elections as political gridlock is often the result, preventing big policy swings that scare investors. But a rally after this midterm cycle is unlikely as the Fed’s aggressive rate hikes have raised the odds of a recession, BlackRock said. “We see a bigger problem for stocks than any potential positives…