Global markets rally as Democrats win US midterms, 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 posted strong gains. Oil prices plunged over 8% on hopes Democrats might limit war funding, potentially forcing President Donald Trump to end the conflict with Iran. Trump acknowledged the war contributed to his party's defeat, as borrowing costs fell across US and European government bonds. Semiconductor stocks dropped on fears stricter AI regulation could slow data center development, though major tech giants like Apple and Microsoft rose. Analysts noted divided government historically favors markets by limiting public expenditure.