This is bad news for Republicans and good news for Democrats, as a strong midterm win sparks panic in the White House while the Fed eyes a big rate hike and oil prices drop on hopes the Iran war is cooling off.

• Democrats brought in a younger, more diverse class of new senators after crushing the midterms, while Republicans face talk of impeachment and people quietly leaving the administration.
• A top Federal Reserve official is now considering the biggest interest rate hike since 2022 because inflation is still running hot.
• Oil prices fell on hopes the Iran war is winding down, even as reports say Netanyahu is calling Trump every day pushing for more strikes.
• Democrats are considering a government shutdown to force an end to the Iran war and bring troops home, while Republicans like Ted Cruz expect impeachment fights targeting Trump, his family, and cabinet members like Defense Secretary Hegseth.
• Texas Republicans are reportedly nervous that Elon Musk could leave the state now that it's turned more Democratic.

Outlook: Expect the rate decision, the impeachment threats, and the Iran war's direction to keep driving both the political mood and the markets in the coming weeks.