US midterm results spark market moves as Democrats gain ground

Democrats secured early Senate victories in the US midterm elections, increasing the possibility they could take control of the chamber from Republicans and prompting swift market reactions, though the final outcome remains uncertain. US stock futures declined sharply, Treasury yields dipped, and the dollar weakened as investors weighed the potential for a Democratic sweep. Analysts noted that a Democratic Congress could limit fiscal stimulus and increase regulatory scrutiny of AI and Big Tech. Some analysts downplayed the election's market impact, attributing recent volatility to AI concerns rather than political shifts. Others noted President Donald Trump retains veto power and can still influence trade and foreign policy, with divided government potentially controlling fiscal deficits.