Stock futures jump as Democrats take control of both congressional chambers
Investors reacted to the midterm results with a rally in U.S. contracts, while Asian and European markets showed mixed moves early Wednesday.
By Paula Delgado ·
U.S. stock futures climbed sharply on Wednesday following the November midterm elections, which resulted in Democratic majorities in both the House and the Senate. The market response reflected a preference for divided government among investors who generally view a split Congress as a stabilizing force for economic policy.
Stephen Brown of Capital Economics noted in an analysis that the extent of the Democratic gains did not drastically alter the immediate policy outlook. He pointed out that the party still lacks a filibuster-proof majority in the Senate and that President Donald Trump retains veto power over legislation.
Trading activity varied across specific sectors. Wind energy stocks rose, while defense stocks fell as traders priced in the possibility that the Iran conflict might de-escalate. Some investors expressed concern that a Democratic Congress might slow the expansion of artificial infrastructure due to safety questions and local opposition to data centers.
Asian markets reacted unevenly to the election results. Japan’s Nikkei 225 index dropped 1.4 percent to close at 62,188.63. In Taiwan, the Taiex lost 0.8 percent. South Korea’s Kospi index gained 0.6 percent to 5,683.80, though individual tech stocks moved in opposite directions. Samsung Electronics slipped 0.7 percent while Kioxia Holdings fell 5.4 percent.
European equity markets opened higher. Germany’s DAX index climbed 1.5 percent to 26,249.34. Britain’s FTSE 100 rose 1.25 percent to 10,770.95, and France’s CAC 40 increased 1.6 percent to 8,148.42.
Commodity prices adjusted to the new political reality. Brent crude oil, the international benchmark, declined 1.2 percent to 102.35 dollars per barrel. U.S. benchmark crude oil lost 0.8 percent to 95.31 dollars per barrel.
Currency markets also shifted. The U.S. dollar weakened against the Japanese yen, falling to 158.30 yen from 158.69 yen. Conversely, the euro strengthened, rising to 1.1255 dollars from 1.1194 dollars.
More Business · Albuquerque news · Watch Your Wallet · Report a business · Got a Story?
