New York stock markets jump with Democratic advance and generate friction with Trump
Democrats win Congress and the Texas government, while Wall Street reacts with sharp rises in indices and a drop in interest rates.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM SEU DINHEIRO · 3 MIN
Wednesday began with strong optimism on American stock markets after the confirmation of the results of the midterm elections, where Democrats won the majority in the House and Senate, according to InfoMoney. According to Seu Dinheiro, the Dow Jones had a significant jump at the beginning of the session, accumulating a gain of more than 1.2 thousand units at the beginning of trading, reflecting the initial dynamics of the markets.
Still at the opening, InfoMoney highlighted that the Dow Jones Industrial Average rose 1.93% to 52,784.48 points, while the S&P 500 registered an increase of 1.14% reaching 7,655.43 points and the Nasdaq Composite rose 1.07% to 25,643.36 points. Your Money pointed out that the S&P 500 and Nasdaq surpassed a 2% increase at the start of trading on Wednesday, driven by the blue wave.
The impact on DXY and sovereign bonds was also significant. According to data from Seu Dinheiro, Treasury yields showed an initial drop across the entire curve and the DXY index fell 0.75%, standing at 101,099 points.
The election also brought relevant regional surprises, as Texas elected a Democrat to state government after more than three decades, according to InfoMoney. The vehicle recalled that the state is home to Tesla, SpaceX and a chip project, in addition to noting that Elon Musk invested an amount close to five hundred million dollars to strengthen the Republican party.
Finally, control of the US Senate was won by Democrats on Tuesday, opening space for changes to the legislative agenda. According to InfoMoney, Senator Elizabeth Warren, from Massachusetts, is tipped to lead the Senate's banking committee.
What changes for the investor
The new power configuration in Washington, with Democratic control in Congress, changes the regulatory and fiscal scenario for the coming years. Investors monitor developments in economic policy and possible resistance to Donald Trump's agenda, which tends to maintain volatility in the stock, interest and currency markets.
Automatically translated from Portuguese.
