Stocks rally, dollar dips after Democrats' midterm sweep
SPY•Global stocks and the dollar recovered after Democrats won control of both chambers of Congress, with the MSCI All-World index up 0.13% and the benchmark 10-year Treasury yield down 3 basis points to 4.92%.
1. Markets recover
Global stocks and the dollar rebounded from overnight lows after Democrats won control of both the Senate and the House in the US midterm elections. The MSCI All-World index rose 0.13%, Europe's STOXX 600 gained 0.5%, and US stock futures turned positive after falling as much as 2% overnight.
2. AI scrutiny weighs
Investors expect the Democratic-controlled Congress to apply more scrutiny to artificial intelligence, a concern that initially weighed on Asian AI stocks. Tesla and SpaceX shares fell around 4.5% to 5% on Europe's Tradegate platform, while other Big Tech stocks declined around 0.3% to 0.9%.
3. Bonds and currencies
The benchmark US 10-year Treasury yield fell 3 basis points to 4.92%, after dropping as much as 6 basis points overnight. The dollar weakened, with the euro up 0.4% to $1.133 and the Swiss franc gaining 0.6% against the dollar.
