Stocks after midterms: 10 findings on the S&P 500's record since 1950

Global stock markets have rebounded from a sell-off triggered by Democrats' victory in the US midterms, as investors reassured by the results no longer being likely to quickly alter the current situation. US President Donald Trump praised Democrats for their performance, stating the election results were not disastrous and the US political system remains robust.

Analysts highlighted opportunities in various sectors that had experienced recent declines, such as technology, and emphasized that the economic growth, infrastructure development, and potential earnings cycle of our lifetime could offer promising prospects. Equity markets displayed positivity, with dip-buyers rushing back into the bruised market, and Treasuries rallied alongside gold.

Investors perceived the Democratic victory as beneficial for companies in clean energy supply chains, such as solar and battery manufacturers, while traditional energy stocks faced underperformance. Banks saw a surge, and basic resources stocks rallied with metal prices, while the US dollar weakened, impacting the perception of US exceptionalism.

Cryptocurrencies experienced mixed reactions, reflecting uncertainty over potential legislation, as Donald Trump had previously advocated for the industry. Gold prices surged, benefiting from the weaker US dollar and falling Treasury yields, reaching above US$4,000 an ounce.