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Biggest risk to the market? Democrats, says investor Marc Lasry

  • "If they do, then what you're going to have is constant investigations," Lasry, the co-founder of Avenue Capital Group, told CNBC.
  • "I think what the market wants [out of Washington] is a little bit of stability, and they're not going to have that at all," he says.
  • Stocks have been under pressure recently, in part because of worries about the continuous turmoil within the Trump administration.
Marc Lasry
Adam Jeffery | CNBC
Marc Lasry

The biggest threat to the U.S. stock market is Democrats taking control of the House of Representatives away from the Republicans, according to investor Marc Lasry.

"If they do, then what you're going to have is constant investigations," Lasry, the co-founder of Avenue Capital Group, told CNBC's "Halftime Report" on Monday. "I think what the market wants [out of Washington] is a little bit of stability, and they're not going to have that at all."

U.S. voters will head to the polls in November for the midterm elections, and the Democrats are currently riding a momentum wave. According to a March NBC News/Wall Street Journal poll, 53 percent of registered voters prefer a Democrat-controlled Congress.

Representative Adam Schiff, a Democrat from California and ranking member of the House Intelligence Committee, stands next to a photograph of U.S. Donald Trump and Russian Foreign Minister Sergei Lavrov during a news conference on Capitol Hill in Washington, D.C., U.S., on Wednesday, May 17, 2017.
Andrew Harrer | Bloomberg | Getty Images
Representative Adam Schiff, a Democrat from California and ranking member of the House Intelligence Committee, stands next to a photograph of U.S. Donald Trump and Russian Foreign Minister Sergei Lavrov during a news conference on Capitol Hill in Washington, D.C., U.S., on Wednesday, May 17, 2017.

Lasry said a Democratic-controlled House could bring about further investigations on Russian meddling in the U.S. presidential election and of collusion between Russia and President Donald Trump.

Republicans on the House Intelligence committee said last week they have found "no evidence of collusion, coordination, or conspiracy" between the Trump campaign and Russia.

Special counsel Robert Mueller is also conducting his own investigation on the matter, as Trump constantly tries to discredit it. On Sunday morning, Trump accused Mueller of hiring "hardened Democrats" to examine alleged ties between his 2016 presidential campaign and Russia. Mueller is a Republican who has held appointments under Democrat and GOP presidents.

Stocks have been under pressure recently, in part because of worries about the continuous turmoil within the Trump administration. On Monday, the Dow Jones industrial average, S&P 500 and Nasdaq composite all fell more than 1 percent.

WATCH: Lasry on Facebook stock