Global markets rebound after Democrats' sweep, Treasury yields fall

Global stocks rebounded and the dollar weakened after an initial sell-off driven by concerns over tighter AI regulation following the Democrats' sweep of the US Congress, while Treasury yields fell and Indian equities closed higher. Investors initially feared a Democrat-controlled Congress could slow the technology sector's rapid expansion, with Asian AI stocks leading declines and US futures dropping sharply. However, markets pared losses as results became clearer, with MSCI's All-World index up 0.13% and S&P 500 futures recovering from a 1.4% decline to trade 0.4% higher. US Treasury bonds rallied, pushing the 10-year yield down three basis points to 4.92%, while the dollar weakened against major currencies. Indian benchmarks recovered from early losses, with the Sensex gaining 380 points, as investors weighed implications for fiscal policy, AI regulation, and the Federal Reserve's outlook.