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 U.S. midterm elections. The S&P 500 rose 1.72%, the Dow gained 2.05% and the Nasdaq added 2.46%, while Brent crude fell 2.2%.
1. Stocks rise after election
Global stocks rallied Wednesday after Democrats seized control of both chambers of Congress, providing greater political clarity. The Dow rose 2.05%, the S&P 500 gained 1.72% and the Nasdaq climbed 2.46%, with communication services, consumer discretionary and technology shares leading gains.
2. Yields and commodities
The U.S. 10-year Treasury yield was down 0.44 basis point at 4.95%, after falling as much as 6 basis points overnight. The dollar retreated and spot gold rose 2.72% to $4,036.49 an ounce, while Brent crude fell 2.2% to $101.27 a barrel.
3. Investors weigh policy
Investors expect the Democratic-controlled Congress to apply more scrutiny to artificial intelligence, a sector that has helped propel global markets through heavy spending on data centers and computing capacity. Advanced Micro Devices rose 1% in early trading after forecasting faster growth through 2027.
