Stocks recover from overnight selling after Democrats win Congress
European shares and U.S. futures turn higher after an early selloff, while investors weigh divided government and the outlook for AI regulation.
Global stocks recovered from an overnight selloff Wednesday after Democrats won control of both chambers of Congress in the U.S. midterm elections. European shares rose and U.S. equity futures moved back into positive territory, reversing earlier losses as investors assessed the policy outlook under divided government.
The reversal followed a difficult Asian session for technology shares. Japan's Nikkei ended lower, while South Korea's Kospi recovered its early losses and finished higher, according to Investing.com. The dollar weakened and U.S. Treasury yields fell as investors moved into government bonds.
The election result does not itself change AI rules or federal spending. Investors are weighing the prospect of tougher scrutiny of data centers against the possibility that political gridlock slows new legislation. The market's early swings show that those competing expectations have not settled into a single view.
Wednesday's U.S. economic calendar includes the ADP private-employment report at 8:15 AM ET, the trade balance at 8:30 AM and the ISM services survey at 10:00 AM. Those releases come after this edition and could shift the focus from election results to hiring, demand and inflation.
