US stocks rise, dollar slides as investors digest Democrats’ midterm victories

Wall Street rallied after Democrats won both chambers of Congress in the midterm elections, as traders bet that Donald Trump's erratic policy agenda would face new limits. The Dow Jones Industrial Average climbed 2%, while the Nasdaq and the S&P 500 each advanced more than 1%, reversing losses in futures contracts overnight. Gold rose 2.2% to top $4,000 an ounce, according to The Guardian.

The dollar moved the opposite way, dropping to a one-month low against a basket of six currencies as money flowed into US treasuries. The yield on the 10-year note slipped to 4.918%, and the two-year yield eased to 4.597%. The pound, euro, yen and Swiss franc all gained on the greenback. European indexes rose too, with bank shares up 2.8%, and clean energy firms Vestas Wind Systems and Ørsted leading gains.

Technology was a weak spot. AI-linked shares fell in Asia on expectations of tougher regulation, and Tesla and SpaceX were lower before the opening bell. Kathleen Brooks of XTB tied this to Elon Musk, who spent $446m on the midterms. Some analysts questioned whether a Democratic Congress will alter policy much, given Trump's reliance on executive orders.

Summarized by PolitiKool from The Guardian’s reporting. Read the full story at The Guardian →