World stocks rally as investors expect more political certainty after Democrats' win
SPY•Global stocks rallied after Democrats won control of both chambers of Congress in the US midterm elections. The Dow rose 2.89%, the S&P 500 gained 1.85% and the Nasdaq advanced 2.13%, while Brent crude fell 9% to $94.50 a barrel.
1. Global stocks rise
Global stocks rallied on Wednesday after Democrats seized control of both chambers of Congress, easing uncertainty that had weighed on markets. The Dow Jones Industrial Average rose 2.89%, the S&P 500 gained 1.85% and the Nasdaq Composite advanced 2.13%.
2. Oil and technology
Brent crude fell 9% to $94.50 a barrel as investors weighed Washington's next steps on talks to end the wars in Ukraine and Iran against concerns that attacks could disrupt supplies. Energy shares were the biggest losers on Wall Street. Advanced Micro Devices rose nearly 1% after forecasting faster growth through 2027, reassuring investors about demand for AI infrastructure.
3. Bonds and currencies
The US 10-year Treasury yield fell 5.18 basis points to 4.90%, while the dollar weakened. Gold rose 3.57% to $4,068.62 an ounce. Investors expect political gridlock could reduce government spending, while possible AI regulation could slow growth and reduce the need for rate hikes.
