Stocks and bonds up on Democrat's midterms victory
Though the results mean control of the government will be divided, markets “like gridlock,” a Morgan Stanley executive told CNBC.
Stock and bond markets experienced a surge following Democrats' midterm victories, as investors remained optimistic about the US economy and fiscal landscape. However, some tech stocks, particularly SpaceX and Tesla, saw declines due to concerns over a potential slowdown in the AI infrastructure buildout. Despite the divided government control, markets displayed resilience, with US Treasurys benefiting from bets that US borrowing would slow.
Morgan Stanley and Bloomberg reported that the fundamental backdrop remained unchanged, with US growth still expected to stay solid. Notably, Elon Musk's SpaceX and Tesla faced setbacks, as the GOP candidate spent heavily to defeat Democrats in Texas, a state where both companies are based.
Brief written by urgent.news from Semafor's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
