'A jump, slump, and pump': Here's what to expect from markets in this year's midterm election cycle

US President Donald Trump at a rally ahead of the midterm election.

Win McNamee/Getty Images

• Midterm election years can be volatile times for the stock market.
• Piper Sandler expects a "jump, slump, and pump" pattern in 2026 based on historic trends.
• Historically, midterm election years have been opportunities to buy the dip.

It's an election year, and for markets, that often means volatility.

Midterm cycles tend to spur drawdowns and volatility for stocks...