Stocks wilt, dollar slides as blue sweep jolts AI bets
SPY•SPY•SPY•SPY•Global stocks and the dollar fell after Democrats won majorities in both chambers of Congress, as investors worried about tighter AI regulation. S&P 500 futures dropped 0.6%, Nasdaq futures fell as much as 2%, and the 10-year Treasury yield slid 6 basis points to 4.906%.
Global stocks slumped and the dollar softened after Democrats captured majorities in the Senate and House. Investors sold stocks, especially AI-linked shares, while cryptocurrencies fell and bonds rallied as investors sought safety.
Investors feared the shift in political control could bring tighter regulation of AI and technology companies and disrupt data-centre development. Nasdaq futures fell more than 2% before trimming losses to 0.8%; European futures were down 1.4%. In Asia, Samsung, SK Hynix and TSMC shares slid, while SoftBank led Japan’s Nikkei 3% lower.
The 10-year Treasury yield fell 6 basis points to 4.906%. The dollar index was down 0.37% at 101.34, while the euro rose 0.5% to $1.1249 and the yen strengthened 0.7% to 157.55 per dollar.
