Democratic Sweep: Brace For Market Turmoil, Then S&P 500 Surge
Markets face days of turmoil after Donald Trump lost Congress, followed by an S&P 500 surge, predicts the CEO ofdeVere Group, one of the world's largest independent financial advisory organisations.
The bullish prediction from Nigel Green comes as Democrats swept both chambers, flipping six Republican-held Senate seats including Texas, South Carolina and Iowa.
AdvertisementS&P 500 futures had already recovered from a fall of as much as 1.4% to trade 0.4% lower by early morning, with Nasdaq 100 futures clawing back most of a 2.4% drop.
The S&P 500 has risen in the 12 months after every one of the 19 midterm elections since 1950, gaining around 15% on average.
Treasurys rallied as results came in, pushing the 10-year yield down six basis points to around 4.9%.
The dollar slid broadly against major currencies while gold climbed.
Japan's Nikkei 225 plunged more than 4% as AI jitters swept through Asian markets.
AI-linked shares led the overnight decline on fears Democrats will slow the data centre buildout, with 56% of voters saying data centres were a crucial or major factor in how they voted.
Healthcare looks set to benefit, with Democrats expected to restore enhanced Affordable Care Act subsidies and revisit Republican Medicaid changes.
Energy has been the best-performing S&P 500 sector this year, up more than 53%, although oil prices fell sharply this week.
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