Global markets rally on Democratic midterm win

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. Analysts noted that divided government in Washington historically favors markets by limiting public expenditure. Oil prices plunged over 8% on hopes Democrats might constrain war funding, potentially forcing President Trump to end the conflict with Iran, which he acknowledged contributed to his party's defeat. US and European borrowing costs fell as oil declines eased inflation concerns. However, AI-related semiconductor stocks dropped on fears Democratic wins in key states could slow data center development, while major tech giants like Apple and Microsoft rose on hopes of sensible AI regulation.