A Donald Trump victory and a Republican sweep of Congress would be a slight negative for the markets, according to UBS Director of Floor Operations Art Cashin.
For now, markets appear to be betting on a victory for Democratic Contender, former Secretary of State Hillary Clinton. However, a number of analysts say that outcome is far from assured.
"I don't think that it's solely about Secretary [Hillary] Clinton versus Mr. Trump," Cashin said on "Squawk Alley" on Tuesday. "The theory is that if [Trump] wins then the Republicans will either retain or win further in both houses. That'll give one party a complete sweep, and that is a slight negative for the markets."
Although a Republican all-out win might be a negative for some markets, Cashin said segments such as pharmaceuticals and banks, which have recently experienced pressure from top Democrats like Vermont Senator Bernie Sanders and Massachusetts' Elizabeth Warren, could benefit.
It would inhibit, "Being able to call on Hillary for a 'You owe me. I campaigned for you and I would like to work on these groups," he said.
Cashin's comment on a Republican win echoed a similar call made by a JPMorgan analyst, who wrote in a research note that if Trump should win it would likely be a positive for banks and consumer discretionary stocks. The bank said if Clinton wins, the markets should rally.
Cashin said if Clinton should win the presidency and the Republicans hold the house, she may face some uphill challenges.
He said a possible investigations on the Clinton Foundation and questions about the Affordable Care Act, which has been heavily criticized by Congressional Republicans and is experiencing soaring premiums nationwide, are potentially thorny questions.
Clinton's problems could also impact Democrat races in 2018, Cashin said.
—CNBC's Evelyn Cheng contributed to this report.