Stocks reverse after Democratic sweep; clean energy jumps
What's new: Defense and some AI-linked names fell, while Treasuries and gold gained as investors bet policy changes will be limited.
Global markets rebounded after an initial sell-off tied to Democrats winning back both chambers of Congress in the US midterm elections. US stock futures turned positive, the Nasdaq 100 erased losses of as much as 2.4% to rise 0.9%, and Europe’s Stoxx 600 gained more than 1%. Treasuries rallied alongside gold as investors judged the results unlikely to quickly alter the broader economic backdrop. Sector moves were sharper: clean energy stocks including First Solar, Sunrun and NextEra Energy advanced, while defense names such as Lockheed Martin, RTX and Northrop Grumman dropped. Tesla and SpaceX also fell after Elon Musk heavily backed Republican candidates.