Overview
- Global equity markets rallied after Wednesday's midterm results, with major U.S. indexes posting strong gains and European bourses rising sharply.
- Oil and natural gas prices plunged on the vote—Brent fell about 10% toward $93 a barrel and European gas dropped more than 8% as traders priced in lower geopolitical risk.
- Investors rotated away from defense stocks into banks, luxury names and renewable energy firms, while semiconductor shares first fell on AI‑spending concerns and then large‑cap tech rebounded later in the session.
- Government bond yields fell across major markets, with the U.S. 10‑year near 4.90%, German yields around 3.27% and the dollar weakening as investors moved into risk assets and Treasuries.
- Analysts warned that heavy private spending on AI and data centers could strain global savings and create bubble‑like risks, and they said a Democratic Congress may press for tighter oversight that could reshape tech investment and financing conditions.