Dollar falls while gold and US Treasury bonds rally as markets react to Democrats’ midterm election victory – business live
Democrats’ capture of Congress raise expectations of tougher regulation of AI sector; US stock futures fall but later pare losses The Texas win for the Democrats spells trouble for datacentres , analysts say. According to Chris Beauchamp , chief market analyst at IG in London: Greg Abbott ’s loss of the Texas governorship means that the construction of more data centres is now open to question.…
Democrats' victory in the US midterm elections has led to a rise in US stock futures, reversing earlier declines. Dow Jones futures are up 0.4%, while S&P 500 and Nasdaq futures have both increased by around 0.15%. The blue wave across the US, with Democrats winning control of Congress, has raised expectations of tougher regulation of the AI sector.
Texas and Georgia, key states for AI datacenters, have seen Democrats win at the governor level, which may impact AI infrastructure spending. Analysts are concerned about potential slowdowns in AI infrastructure rollout in Texas. The Federal Reserve might raise interest rates in December, which could benefit liquidity investors, as yields of most liquidity products could rise in concert with Fed hikes.
Historically, the 12 months following midterm elections have been good for US equities, with an average return of 14%.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- Indian Rupee gains further as US midterm elections keeps US Dollar under pressure fxstreet.com
- Rupee rises 14 paise to 94.61 against US dollar in early trade thehindubusinessline.com
