Wall Street rallies as US midterm results bring political clarity
SPY•Wall Street initially rallied after Democrats' landslide midterm victory brought swift electoral clarity. Oil prices fell sharply after Donald Trump called the Iran war probably unhelpful, while US companies reported earnings growth above 25% for a third consecutive quarter.
1. Markets and earnings
Wall Street initially rallied after Democrats' landslide midterm victory, supported by swift electoral clarity and Donald Trump's pledge to cooperate. Oil prices fell sharply after Trump said the Iran war was probably unhelpful, though prospects for regional de-escalation remained uncertain. The election outcome could cool enthusiasm for AI, which is expected to contribute roughly one-third of US economic growth this year; a slowdown could weaken growth and undermine stocks. US companies posted earnings growth above 25% for a third consecutive quarter in the third quarter.
