Global markets rally on Democratic midterm win

Global markets rallied Wednesday after Democrats won a decisive victory in the US midterm elections, with investors anticipating reduced government spending and lower borrowing costs. The S&P 500 rose 1.69% and the Dow Jones gained 2.39%, while European indices also advanced. Analysts noted that divided government historically favors markets by limiting fiscal expansion, and the new Congress may push for diplomatic solutions to the Iran conflict. US 10-year Treasury yields fell to 4.92%, with similar declines across Europe. Oil prices dropped over 2.9%, while defense stocks declined. However, AI and semiconductor shares fell on potential regulation concerns, while renewable energy stocks gained on Republican losses.