Global stocks and dollar recover after Democrats' midterm sweep

Global stocks and the dollar recovered this morning after Democrats won control of both the Senate and the House in the US midterm elections, raising fears that rapid AI sector growth could face regulatory scrutiny. The Democratic sweep, a major setback for President Donald Trump, included victories in long-conservative districts. Investors expect the new Congress to apply more oversight to AI, initially hitting AI stocks in Asia, though equities later turned higher. Treasuries rallied on expectations of gridlock slowing government spending and AI regulation reducing rate-hike needs. The dollar weakened broadly, while safe-haven currencies like the Swiss franc gained. Tesla and SpaceX shares fell sharply, but semiconductor stocks could brush off concerns.