New Jersey-based CFP explains what changes for your wallet after Democrats won Congress

Voters said high prices and the economy were among their biggest concerns heading into this week's election, helping drive Democrats back into control of Congress.

Now, many consumers are wondering what the new political landscape could mean for their taxes, retirement accounts and household budgets.

Financial experts like Dan Hernandez, a certified financial planner with New Jersey-based Milestone Wealth Management, caution against expecting immediate changes.

"While the president's Republican and the House and Senate are Democrat, it limits what they both can do," Hernandez said.

That divided government could make major policy changes affecting consumers more difficult to enact, at least in the near term. Meanwhile, Hernandez said several other factors may have a more immediate effect on Americans' finances.

Why markets initially welcomed the results

Following the election, the Dow posted its biggest gain of the year. On Nov. 4, the Dow Jones Industrial Average jumped 1,569 points, or 3%.

Other indexes also surged after the results appeared to ease uncertainty about who will control Washington.

However, concerns that a shift in congressional political control could slow the construction of data centers that power artificial intelligence services effectively wiped out those gains Thursday.

That aside, Hernandez said history has shown the market performs well under a divided government, because of the prospect of fewer policy and regulatory changes.

For retirement savers, Hernandez said investors should focus on long-term trends rather than short-term political developments.

Oil prices, interest rates and inflation remain key

Hernandez said the election is only one piece of a much larger economic picture, pointing to oil prices, interest rates and spending related to artificial intelligence as major drivers of market performance.

Among those factors, he believes energy prices could have the most direct effect on consumers.

"I think what's going to impact the average person a little more substantially is going to be an interest rate stabilization that's going to come with oil prices coming down," Hernandez said. "Certainly, oil coming down in general helps us all because we all drive and spend money on gas."

Crude oil prices have retreated in recent days, easing from elevated levels reached during the conflict involving Iran. Recent trading showed both U.S. crude and international Brent crude futures moving lower from recent highs.

Hernandez believes lower energy costs could eventually ripple through the broader economy.

Why many consumers still feel squeezed

Although wages have increased, Hernandez noted many households continue to struggle because prices have risen faster.

"Wages are up; they're just not up as much as inflation is," Hernandez said.

That gap helps explain why voters consistently identified prices and the economy as top concerns heading into the election.

For now, Hernandez said consumers should be cautious about assuming election results alone will dramatically improve or worsen their financial outlook.

"People that win think things are going to immediately get better. People that lose think things are going to immediately get worse. It doesn't really work that way," he said.

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