Democrats' Midterm Win Sends Stocks and Dollar Lower

Global stocks fell sharply and the dollar hit a one-month low on Wednesday, November 4, after Democrats secured control of both the Senate and the House of Representatives in the US midterm elections, according to Reuters. The Democratic victory fueled investor concerns that rapid growth in the artificial intelligence sector could be slowed by increased regulatory oversight. The party won Senate races in South Carolina, Texas, and Ohio, delivering a significant blow to President Donald Trump and prompting a sell-off in AI-related stocks. AI company shares plummeted, pressuring the dollar, while cryptocurrencies also declined on expectations of stricter regulation. Investors moved toward safer assets like US Treasuries, with the 10-year yield falling to 4.906%. The dollar weakened against major currencies, with the euro rising 0.5% to $1.1249.