Global markets rally after Democratic midterm win; oil plunges 8%

Global stock markets rallied Wednesday after Democrats won a decisive victory in the US midterm elections, with investors betting on reduced government spending and potential Middle East de-escalation. The Dow Jones surged 3.03%, while European indices also rose sharply. The Democratic win signals divided governance in Washington, which analysts say historically favors markets by limiting public expenditure. Oil prices plunged over 8% on hopes Democrats may restrict war funding, potentially forcing President Trump to end the conflict with Iran, which he acknowledged contributed to his party's defeat. Borrowing costs fell globally, with the US 10-year yield dropping to 4.88%. However, tech stocks showed mixed results, as semiconductor firms declined on fears Democratic victories could slow AI data center development, while major tech giants like Apple and Microsoft gained on hopes of AI regulation curbing overinvestment.