Congress's committee makeup is shifting in ways that could affect defense policy, while markets bounced back sharply after a rough day.

• Defense spending looks safe either way — the House and Senate Armed Services committees draw members from both parties who represent military districts or are veterans, so cuts are unlikely no matter which party is in charge.
• Lawmakers in both parties are uneasy about Defense Secretary Pete Hegseth's firing of several generals, and it's a flashpoint worth watching.
• A Navy admiral fired by Hegseth won a House seat in South Carolina, flipping it from red to blue, and could soon land a spot on House Armed Services.
• Alaska's Senate race is razor-close, with Republican incumbent Dan Sullivan leading by less than 1%; Sullivan has working relationships with Hawaii's delegation, so the outcome matters beyond Alaska.
• Stocks are recovering fast — the Dow lost almost 200 points the day before but was already up almost 1,300 points the next morning.

Outlook: Watch for the Alaska Senate result to be finalized and for any fallout in Congress over the general firings.