Early midterm returns push US stocks lower and lift Treasuries
Early results from the US midterm elections point to Democrats taking control of the House and possibly the Senate, and markets reacted on 4 Nov. Contracts for the S&P 500 fell 0.3% and Nasdaq 100 contracts dropped 0.6% after earlier gains, while the 10-year Treasury yield fell to 4.92%. The MSCI Asia Pacific Index slipped 0.2%, though South Korea's Kospi rose 1%. Brent crude dropped to $103.54 a barrel and WTI to $96.04, and the dollar weakened against Group-of-10 peers.
Key facts
- US stock futures fell, with S&P 500 futures sliding 1.06% and Nasdaq 100 futures dropping 1.9%.
- The 10-year Treasury yield fell seven basis points to 4.89%, according to Bloomberg.
- Ken Mahoney of Mahoney Asset Management said the early results are reshaping the balance of power in Washington.
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Why it matters
Analysts say a divided Congress could bring legislative gridlock and reshape US policy and financial markets.
What changed
First published from The Economic Times, The National and Euronews