5 takeaways from US midterms as Democrats sweep Congress and Trump faces Iran reckoning
A Democratic victory that reached from Texas to Kansas changed the terms of Donald Trump’s final two years in office. When the new US Congress convenes in January, Democrats will control both chambers. They can block his legislation, challenge spending on the war in Iran and scrutinise the deals he strikes with Beijing. The day after his party lost control of Congress, Trump invited reporters to…
The U.S. stock market closed higher on Wednesday following Democrats' sweeping victory in the midterm elections. Wall Street saw a sharp increase as the political shift eased uncertainty and boosted risk appetite. Democrats secured control of both the Senate and House of Representatives, marking a significant win in Republican strongholds and a backlash against President Donald Trump.
Large technology stocks rose on expectations of a slower expansion of AI infrastructure, which could favor them competitively. Smaller companies facing potential challenges in AI infrastructure buildout saw a decline in shares. A significant factor driving the market's positivity was the decline in oil prices, fueled by bets that the change in power would hasten the end of the Iran war.
Terry Sandven, chief equity strategist at US Bank Wealth Management, stated that the election introduces a degree of gridlock in the economic backdrop, often favoring equity prices. Data center operators and AI heavyweights experienced differing trends, with cash-rich AI companies rising and chipmakers and data center operators falling after Democrats gained in key states like Texas and Georgia.
The AI trade faced headwinds due to expectations of a slowdown in expanding AI infrastructure, potentially easing cash demands on tech companies while pressuring operators and suppliers dependent on rapid buildout. Major AI companies such as Microsoft, Amazon, Alphabet, and Meta Platforms saw gains, while data center operators experienced substantial losses. The Philadelphia Semiconductor index hit a six-month low, while AMD rose as its data center sales surged.
Overall, the market's performance reflected a mix of optimism regarding political change and concerns about the impact on specific sectors, particularly AI and data center infrastructure. The S&P 500 ended the day at 7,688.62 points, the Nasdaq Composite at 25,736.51, and the Dow Jones Industrial Average at 53,356.12.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 11 other outlets
- Wall Street ends higher after Democrats win Congress freemalaysiatoday.com
- Oil slumps after midterm election rebuke to Trump raises bets on Iran war exit businesstimes.com.sg
- 'Freed up or congressionally constrained': Is Trump more or less likely to resume war on Iran? middleeasteye.net
- Blue wave across America: do US midterms signal beginning of the end for Trump? france24.com
- Trump and Vance lead GOP blame game as fingers point at Iran war abc.net.au
- US midterms: Democrats’ win could complicate Trump’s China diplomacy, but broader Asia policy unlikely to shift channelnewsasia.com
- Vance: GOP lost midterms due to Iran war, voters want ‘change’ in Israel relationship timesofisrael.com
- As Democrats Sweep US Midterms, Iran's Khamenei Issues Warning To Iranians ndtv.com
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