Dollar falls while gold and US Treasury bonds rally as markets react to Democrats’ midterm election victory – business live

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The dollar has hit a one-month low, US stock futures are down and gold rose after the Democrats won control of Congress, increasing expectations of tougher regulation of the AI sector.

US Treasuries rallied as fears around the fiscal outlook eased and investors sought the safety of bonds with the dollar falling.

Democrats regained control of the Senate and also triumphed in the House of Representatives, routing Republicans nationwide with historic victories that will give them powerful new leverage over Donald Trump for the remainder of his presidency.

You can follow the latest on our midterm election blog here:

The dollar fell 0.6% against a basket of major currencies at one stage, and is now down 0.35%. Its decline was most pronounced against the Japanese yen and the Swiss franc, both seen as safe-haven currencies.

Gold prices ​rose 2.4%, supported by the weaker US dollar. Spot gold climbed to $4,022 an ounce.

US stock futures fell sharply, with tech-heavy Nasdaq futures losing more than 2% before paring those losses to 0.25%. S&P 500 futures are down 0.2%.

In bond markets, the two-year Treasury yield fell 3.5 basis points overnight and is now down 1.6bps at 4.598%, while the 10-year yield is 2bps lower at 4.929%. Yields move in opposite direction to prices.

There’s been a rally for US Treasuries as well, given that divided government has generally made it harder for fiscal stimulus to be passed. So that’s eased concerns on the fiscal trajectory a bit.