03:33 PM EDT, 09/11/2024 (MT Newswires) -- The upcoming US presidential election is likely to result in a split Congress, while any potential single-party majority in both chambers is expected to be "very thin," Wells Fargo Investment Institute said Wednesday.

The elections are scheduled to take place in November. Vice President Kamala Harris is the Democratic Party's nominee after President Joe Biden dropped out of the race late in July. Former President Donald Trump is the Republican nominee.

Polling indicates the contest is "a lot closer" since Biden bowed out, Wells Fargo Investment Senior Global Market Strategist Scott Wren said in a note to clients.

"That also could be interpreted to mean that the ultimate control of Congress is more uncertain now," Wren wrote. "We believe the highest probability outcome is a divided Congress. But even if one party holds a majority in both chambers, it is likely to be very thin."

While there are major differences on policies and ideology between the two major parties, there are also "notable" intraparty divisions, which reduce the odds of large legislative packages being signed into law, according to Wren.

Both parties are likely to push for additional spending, but differ on tax policy, with any "large changes" to the tax code not likely in case of a split Congress, the firm wrote. There's a possibility for 2017 tax cuts to be extended "if Congress can rekindle the House compromise" on certain issues from earlier this year, Wren said.

Issues such as policies around new import tariffs, particularly from China, and regulatory changes have "less common ground" between the two parties, Wren wrote. "Another likely effort from both candidates is aimed at small businesses and overlap somewhat in terms of taxation and reducing regulatory headwinds."

Housing affordability, the cost of living outside of housing, immigration, and regulation are among the issues with less overlap between the two candidates, according to the note.

Wells Fargo Investment is a unit of a bank affiliate of Wells Fargo ( WFC ) .

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