Stocks, dollar slide as stunning victories for Democrats jolt AI bets
SPY•Global stocks slumped and the dollar hit a one-month low after Democrats won majorities in both chambers of Congress, raising investor fears of tougher AI regulation. U.S. 10-year Treasury yields fell 6 basis points to 4.906%.
1. Markets react to sweep
Global stocks slumped and the dollar hit a one-month low on Wednesday after Democrats gained control of both the Senate and House, fuelling fears that regulatory scrutiny could hamper rapid AI-sector growth. AI stocks fell, cryptocurrencies also declined, and bonds gained as investors sought safer assets.
2. Stocks pare losses
Nasdaq futures fell more than 2% before cutting losses to trade down 0.5%; S&P 500 futures were down 0.35%. European futures were down 0.4% after sliding 1.5% earlier. In Asia, Samsung, SK Hynix and TSMC shares fell sharply before paring losses.
3. Bonds rally, dollar falls
The U.S. 10-year Treasury yield fell 6 basis points to 4.906%. The dollar index was down 0.37% at 101.34, while the yen strengthened 0.7% to 157.55 per U.S. dollar and the Swiss franc gained almost 0.8% to 0.8144 per U.S. dollar. Investors also weighed the possibility of slower government spending and tighter curbs on AI data-centre development.
