Stock Markets Rise After Democrats Win Control of US Congress

Stock markets rose on Wednesday after Democrats gained control of both chambers of the U.S. Congress for the first time in eight years, limiting President Donald Trump's room for action. Analysts say the politically deadlocked situation in Washington could bring increased stability. After initial hesitation, the Stockholm stock exchange climbed about 1 percent by early afternoon, with U.S. markets expected to open higher. Strategist Henrik von Sydow noted the market favors clarity, and the clear result is positive long-term, though the likelihood of new large stimulus packages decreases and risks of stricter regulations on AI, tech, and crypto increase. Historically, tech, finance, and traditional energy face headwinds under a Democratic majority, while pharmaceuticals, healthcare, and renewable energy may benefit. Maria Landeborn of Danske Bank said Trump's veto power will lead to compromises and small changes, with the "Big beautiful bill" secured until 2028, and noted the rate and dollar decline is positive for markets.