Democrats Take Congress as Markets Retreat on Election Shock

The US dollar index fell below 101.5, its lowest point in five weeks, as election results pointed to Democrats taking control of Congress. US stock futures fell too, with Nasdaq futures down 2.2% in early trading. Later reports said Democrats had won back Congress, while futures recovered some losses. The quick shift showed how fast investors were weighing a new balance of power in Washington. ^1,2

That balance shifted after Democrats won key races and took control of the House and Senate, according to election projections reported by multiple outlets. Midterms choose members of Congress halfway through a president’s term. This result leaves President Donald Trump facing a Congress controlled by the opposing party. Early market reports showed S&P 500 and Nasdaq futures falling, the dollar weakening and investors buying US Treasuries, whose prices rose as yields fell. ^3,5

The losses reflected worries about what a Democratic Congress might do, not just who won. Investors fear tougher oversight of artificial intelligence and limits on data center construction could slow spending that has powered some technology shares. Texas drew particular attention after Democrat Gina Hinojosa won the governor’s race; she has called for a pause on new data centers. A stronger check on Trump’s spending plans could also ease borrowing worries, helping Treasury prices even as stocks fell. These are market expectations, not policies already in place. ^2,3,6

Those technology concerns have not erased every gain: AMD shares rose in extended trading after strong quarterly results and forecasts, even as the wider market came under pressure. The next test is how Congress and the Trump administration respond when the new lawmakers take office in January 2027. For investors, the immediate questions are whether proposed rules become law and whether the election-night selloff lasts. Later coverage already showed futures recovering some losses. ^1,4