Democrats won control of both chambers of Congress, prompting investors to weigh potential legislative gridlock and tighter scrutiny of AI, cryptocurrency and other sectors. Global stocks swung between gains and losses, while U.S. 10-year Treasury yields edged down to 4.933%.
Global stocks swung between gains and losses as investors assessed the implications of Democrats winning control of the House and Senate. The result could bring legislative gridlock between President Donald Trump’s administration and Congress, while Democrats appeared unlikely to gain the two-thirds majority needed to override a presidential veto.
Investors considered the potential for greater scrutiny of AI companies and data-center projects, as well as tighter cryptocurrency regulation. Analysts cited possible investigations into technology companies, while describing the chances of legislation severely undermining the data-center buildout as slim. Bitcoin fell as much as 2.79% to $75,666.11 and ether declined 1.9% to $2,248.65 before both recovered to trade flat.
S&P 500 futures were down 0.5% and Nasdaq futures fell 0.8% on Wednesday. The yield on the 10-year U.S. Treasury was down 1.3 basis points at 4.933%. Investors also weighed the possibility that legislative gridlock could stall budget negotiations and complicate the fiscal outlook.
