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US Stocks Rise and Dollar Slides as Investors Digest Democratic Midterm Win
US stocks rise and the dollar slides as investors digest Democrats' midterm wins, with the Dow up 2%.
Key points
- The Dow Jones rose 2%, while the Nasdaq and S&P 500 each gained more than 1%.
- The dollar fell against major trading partners' currencies, hitting a one-month low on Wednesday.
- Musk pumped $446m (£331m) into the midterms, funding Republican-aligned political action committees and groups.
Why it matters. Markets are weighing whether a Democrat-controlled Congress could bring greater scrutiny of AI companies, which could also cast doubt on a potential merger of Musk's two companies.
Wall Street climbed on Wednesday after Democrats won control of the Senate and House, with the Dow Jones up 2%. The Nasdaq and S&P 500 each gained more than 1%, while the dollar index hit a one-month low and 10-year Treasury yields fell 4.7 basis points to 4.918%. Gold rose 2.2% past $4,000 an ounce, and ING's Chris Turner said speculation over slower AI spending briefly hit markets.
Latest updates
US Stocks Rise and Dollar Slides as Investors Digest Democratic Midterm Win
US stocks rose after markets opened on Wednesday, November 4, following the Democrats' decisive victory in the US midterm elections. The South China Morning Post reported that the result lifted some of the political uncertainty hanging over Wall Street. The S&P 500 opened 1.1% higher at 9:30am local time. The Guardian reported that government bond yields fell and the dollar slid as investors weighed the implications for the world's largest economy. Early fears over how the election results would affect markets had eased by the time trading began.