Blue sweep rattles the AI trade from Tokyo to Wall Street
Deborah Cunningham, chief investment officer for global liquidity markets at Federated Hermes, told Reuters that Democrats “pulled off a double victory in the US midterm elections that few saw coming at the onset of the year.” Cunningham said the result leaves the federal government divided on most issues.
Kristina Hooper, chief market strategist at Man Group, told the Financial Times the margin removed a tail risk. “This is a resounding blue sweep that should preclude any material challenge to the election results,” she said.
Priya Misra, a portfolio manager at JPMorgan Asset Management, told the FT the standard read on divided government may not hold. “Normally a divided government is good for stocks as it means fewer policy changes, but this time, I wonder if the Democrats might push through AI regulation,” she said.
Shares in Tesla and SpaceX fell around 4.5 percent to 5 percent on Europe’s Tradegate platform, against declines of around 0.3 percent to 0.9 percent for other large technology stocks, Reuters reported.
Tuesday’s US close, before results, had the S&P 500 up 0.36 percent at 7,568.92 and the Nasdaq Composite up 0.83 percent at 25,372.01, with the Dow Jones Industrial Average down 0.38 percent.
